Wall Street asks the hard questions

Chuck0 chuck at tao.ca
Tue Apr 25 10:20:48 PDT 2000

Doug Henwood wrote:
> [From an article in TheStreet.com about Amazon.com. Aspiring to the
> negative single digits!]
> "We want to understand the mechanics of profitability," says Sara
> Farley, an analyst with PaineWebber who rates Amazon shares neutral.
> (Her firm hasn't done banking for Amazon.) Farley and other analysts
> want a road map and more information on the performance of different
> product lines. When will gross margins improve, and by how much? When
> will operating margins, which last year were -22%, move into the
> negative single digits? When will elusive profits materialize? Farley
> says she expects at least some guidance about the things that will
> push the company towards profits, and that increased openness may
> smooth out some of the volatility surrounding the stock.

Amazon.com will move into profitability as soon as many investors realize that the market will stay stagnant for some time to come. Amazon.com will profit from a huge wave of financial advice bestsellers like "Investing for Dot-Com Dummies" and "Chicken Soup for the Dot-Com Downsized Soul."

I turn 35 this week, which means I can remember back in the 70s when the NYSE was stuck like a broken record.

-- << Chuck0 >>

This was the year *everything* changed.

-- Commander Ivanova, 2261

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