AMZN madness

[Brad De Long]

>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
><http://quote.yahoo.com/q?s=AMZN&d=5d>. 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.
>
>Doug

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