Date: Fri Apr 22, 2005 6:59 pm
I haven't gone through the earnings report in detail but a few points tonote were
1. lower margins
2. revenue outlook a little lower than expected for the year (just a little)
3. Subscriptions growth is exciting for now but outlook could have beenbetter.
The reason I had recommended this stock was to know if it was losing marketshare to BBI and that isn't happening. 2.6% US penetration and some 8 or 9 %Bay area penetration just tells you that it has immense potential.
The earnings weren't stellar so I'll tell you what I told my buddy at work.Take profits if you bought in lower 10's and you might get a chance to dipin, if not then wait it out but it could take sometime considering themarkets are really directionless right now.
Forget the bullshit that Herb Greensberg gives out on yahoo for eitherNetflix or Overstock. The last time the analyst did that for Amazon whenthey weren't making money and were more focused on revenues was 2002 when itwas declared a failied business model. Amazon has done pretty well sincethen and is a sustainable business.
