Come on Buy more guys Its only gonna go up
and then you'll be sorry you did'nt buy more.
And as for all those grumpy OLD men on this board you don't
have a clue how life works in the 90s its the INTERNET
thats were the ACTION IS. This company is probably like
the newest idea and the best people on the Internet
Its gonna go to a $100 a share real soon so Get outa
the way take your Walkers and go to the park and leave
the investing to the New Generation.
Hey! Whats going on! 2 points off the high? whats happening? I just put my kids
college money in this..... What ?!.... Bezos is selling? Who is Bezos......? What
insiders!?....19 million more shares?..... I thought there was only 3 million.....my broker
said so.......no I don't know him, he cold called me.......oh, he didn't tell me the whole
story?.... What should I do now, the price is dropping? What do you mean, NO
earnings, you mean I own a company that LOSES money? Whats happening? I
thought we were all gonna be rich.........its priced at 15 times the competition, why that
preposterous.....(honey, call my attorney, I'm gonna sue that @#$%&*
toycruiser, after market trading was only 11,000 shares.....last 4000 was at 62 5/8................volume was very light so I think there is nothing you can read into it. if you put a gun to my head i would guess AMZN opens the high tomorrow and goes straight down from there............ 15 more hours to go....;^)
Amazon lost $1.17 for the year of 1997. the losses are increasing as the sales increase. 1998 is also forcast as a losing year. The diference here will be that the FLOAT in 1998 will be double triple maybe even 5 times as much as it was in 1997. If one insider sells, perhaps just 3 million shares out of the 19 million held (15%) to DOUBLE the float......then the shorts would have no problem covering, and in theory the stock would be worth half as much, or 30$, no?........;^)
Amazon.com Announces Financial Results for Fourth Quarter and 1997 Year End
Net Sales Increase 74 Percent Over Third Quarter
SEATTLE, Jan. 22 /PRNewswire/ -- Amazon.com, Inc. (Nasdaq: AMZN) today announced financial results for the fourth quarter of 1997 and for the fiscal year.
Net sales for the fourth quarter were $66.0 million, a 74 percent increase over net sales of $37.9 million reported for the
third quarter ended September 30, 1997. Net sales increased 680 percent over net sales of $8.5 million reported for the fourth
quarter of 1996. Net loss for the fourth quarter ended December 31, 1997 was $9.3 million, or $0.39 per share, compared with a net
loss in the quarter ended September 30, 1997 of $8.5 million, or $0.36 per share. The company reported a net loss of $2.3 million
or $0.10 per share in the quarter ended December 31, 1996.
Net sales for fiscal 1997 were $147.8 million, an 838 percent increase over net sales of $15.7 million reported for fiscal 1996. Net loss for fiscal 1997 was $27.6 million, or $1.17 per share, compared with a net loss in fiscal 1996 of $5.8 million, or $0.25 per share.
Amazon.com also announced that cumulative customer accounts grew to over 1,510,000 at December 31, 1997, an increase of 61 percent from 940,000 customer accounts at the end of September 1997 and 739 percent from 180,000 customer accounts at December 31, 1996. Repeat customer orders represented more than 58 percent of orders placed during the quarter ended December 31, 1997.
During the quarter, Amazon.com continued to demonstrate its leadership in the online commerce arena. Audience reach
increased dramatically during the quarter, according to Media Metrix: The PC Meter Company. December saw Amazon.com moving to number
22 in rank among all Internet sites for household users, and number 16 among all Internet sites for business users. Among
household users, Amazon.com's reach rose to 6.3 percent in December, from 4.2 percent in September and 3.2 percent in June. Among
business users, Amazon.com's reach rose to 8.8 percent in December, from 6.1 percent in September. Amazon.com's growing audience
reach was also measured by Relevant Knowledge, which ranked Amazon.com number 18 among all Internet sites in December, with an
estimated 2.0 million unique visitors during the month, up from number 25 in October.
"The 1997 holiday season demonstrated increased acceptance of online commerce, which drove our exceptional growth in sales
and customers," said Jeff Bezos, Amazon.com president and chief executive officer. "Serving so many of our customers' holiday
shopping needs capped a year of significant progress for Amazon.com. We solidified and extended our leadership position in this
rapidly evolving market, significantly improved our product and service offering, and increased our cash and investment balances by
nearly $120 million. We intend to continue to invest aggressively in building our business and brand, enhancing our product and
service offerings, expanding the range of products we offer to our customers and broadening our distribution relationships with the
goal of maintaining and continuing to extend our leadership position."
During the quarter, Amazon.com opened its new 200,000 square foot distribution center in Delaware and completed the
previously announced 70 percent expansion of its Seattle distribution center. These moves complete the company's planned expansion of
its distribution center capacity to nearly six times previous floor space, enable the company to stock hundreds of thousands of
titles and can support substantial future growth. Such expanded inventory will enable Amazon.com to increase the portion of books
shipped same-day and broaden its direct-from-publisher buying programs. Establishing distribution centers on both coasts has already
reduced shipping times for Amazon.com customers.
Ok, here's my take on the earnings report.
The good (for Amazon): Losses were about $0.05 less than expected. Gross profit margin sequentially quarter to quarter was up from 18.9% to 19.5%.
The bad (for Amazon): Gross profit margin is pretty much flat for the year at 19.5% and down a lot from last year when it was 22%. When is this new economics of not having a brick and mortar store supposed to kick in? Also, AMZN seems to be building a hefty chuck of long term debt.
My opinion is that if AMZN were still at $30, this would be a good report, but its hardly a great report and doesn't seem to justify the price. However, I've grown tired of trying to predict when AMZN will drop.
Predicting how AMZN will do tomarrow is very difficult, if not impossible. However, here are some reasons why the stock will have a very difficult time in the next few weeks:
1) Earnings - did AMZN meet analysts expectations? No, not at all, if you look at the financial statements. In particular, look on the B/S - there is an account named deferred charges, in the amount of $2.24 million. There was no such account in previous statements. Where did this account come from? This amount represent a charge equivalent to 9 cents a share. AMZN posted a net loss of 39 cents, include these chares, and net loss would have been 48 cents. Creative accounting?
2) AMZN now has $76 million in long term debt. Servicing this debt comes to about 5 -7 cents (conservative estimate) a quarter in interest expense. This creates additional expenses that AMZN now has to cover.
3) The lock up period for restricted shares has been ended. Which means insiders are free sell their shares, within SEC regulations of course.
4) The last few days AMZN volume has been heavy. Possible reason: the shorts were covering (short squeeze). Perhaps wanting to close their positions before the earnings release. Now that the shorts have covered, there is increased pressure to short the stock again.
This is a very tricky game. Unsophisticated investors are advised to stay out of the game.
In November, Amazon.com introduced an innovative Gift Center to make gift giving
fast and easy and to augment its powerful recommendation services. The Gift Center
includes thousands of recommendations and a Gift Ideas for Kids feature that offers
tailored gift ideas for children and young adults by age range. In addition, the company
introduced gift certificates, including electronic gift certificates that can be delivered by
Amazon.com continued to extend its distribution relationships during the quarter, and ended the quarter with premier or
exclusive relationships with the top three and five of the top six Internet sites, according to Media Metrix. During the quarter,
GeoCities named Amazon.com its exclusive bookseller, providing placement throughout its themed communities and anchor tenant presence
in the GeoCities Marketplace. In addition, Amazon.com became the premier bookseller on the @Home Network's shopping service,
book directories and search pages, and Netscape made Amazon.com the exclusive bookseller in the recently launched Marketplace
section of Netscape Netcenter. The company continued to add members to its Associates program, and ended the year with more than
28,000 registered Associate program members.
In December, Amazon.com substantially increased its cash and investment balances by completing a $75 million three-year credit facility. The fully funded facility provides the company with increased flexibility to pursue its long-term strategic objectives.
Amazon.com, Inc., Earth's Biggest Bookstore, is the leading online retailer of books and is the premier bookseller on
AOL.com, Yahoo!, Netscape, Excite.com, GeoCities, the AltaVista Search Service, @Home Network, and the Prodigy Shopping Network.
Amazon.com offers a catalog of 2.5 million titles, easy-to-use search and browse features, e-mail services, personalized shopping
services, Web-based credit card payment, and direct shipping to customers. Amazon.com has virtually unlimited online shelf space and
can offer customers a vast selection through an efficient search-and-retrieval interface, as well as streamlined ordering
through 1-Click(SM) technology.
This announcement contains forward-looking statements that involve risks and uncertainties, and actual results may differ
materially from predicted results. Potential risks and uncertainties include, among others, Amazon.com's limited operating history, the
unpredictability of its future revenues, and risks associated with capacity constraints and management of growth. More information about
factors that potentially could affect Amazon.com's financial results is included in the company's final prospectus, dated May 15,
1997, as well as the company's Form 10-Q for the third quarter ended September 30, 1997, both filed with the Securities and
NOTE: Amazon.com, Earth's Biggest Bookstore, and 1-Click are service marks of Amazon.com, Inc. All other names are trademarks of their respective owners.
Lets not forget that historically the 4 rth Quarter is the biggest selling quarter for all
the booksellers. It is the Xmas season, and for BKS and BGP always the biggest in
sales and usually the ONLY profitable quarter. Why will AMZN be any diferrent?
There is a very good chance that Q1 sales will be flat or less than those of the Xmas
season. Then what happens to the stock when everyone starts screaming that sales
growth (the only thing they have going for them) slows down?.......................;^)
Well Looks like im in the Money!! Its offcial Amazon is
the best company in America this stock will be at $200 a share
in a month I just wish i could buy more Hell maybe ill sell
my car.So all you old farts just remember who the Queen of the
And P.S. Nobody Will Sell this Stock why would they?
It only can go up in price!