AMZN madness

Brad De Long delong at econ.Berkeley.EDU
Wed Dec 16 11:20:22 PST 1998

>How about that stock market, eh? Amazon is up 47 3/4 points to 290 1/2 as I
>type. Yahoo has a hilarious 5-day chart at
><>. Today's ostensible reason: an
>analyst at CIBC Oppenheimer figures the stock will hit $400, based on his
>profit projections for 2004! And by his account, the stock is cheap today,
>trading at only 28 times 2004 earnings!!!
>Based on current prices, Amazon's stock is worth $15.2 billion, and Amazon
>founder Jeff Bezos' personal stake is worth well over $5 billion. Barnes &
>Noble's market capitalization is just $2.2 billion, meaning that Bezos
>could buy B&N twice and still have hundreds of millions left over.
>Truly America is a wondrous place.

This is why Alan Greenspan is not a happy camper these days. The rest of the world (save possibly western Europe) teetering on the edge of the economic drain, and yet inside the U.S. the last thing he wants is for money to be cheap so yahoos can easily borrow and bet on an ever-rising stock market...

Brad DeLong

More information about the lbo-talk mailing list