June 8, 1999
Fools on "Amazon.bomb"
Online bookseller Amazon.com has been at the center of a heated debate since going public in May of 1997. The question: How much is this company actually worth? Back in December two analysts had vastly different answers to that question. One gave a 12-month price target of $133 per share (split-adjusted); the other said $16 (split-adjusted). After a substantial run-up, Amazon shares have been halved and currently trade around 120. Has this bubble we keep hearing about finally burst?
That's what many skeptics are saying. A recent issue of Barron's proclaimed the party over with its May 31st cover story, "Amazon.bomb." More than a few Fools took exception to the piece, and the topic was covered in numerous articles on the Fool site. We've gathered them here in this collection.
Cynics may say it's no surprise that Fools have rallied around Amazon. The stock has been a Rule Breaker holding since September 1997. But Fool writers and analysts have disagreed about this stock on numerous occasions, and the beauty of the Fool site is that everyone has an opportunity to share their opinions. Warren Gump (TMF Gump) questions the valuation of Amazon, and we've included his piece in this collection as well.
Next -- David Gardner on Amazon.BOMB