/ 9 January 2001

AMAZON OUT OF THE WOODS

ONLINE retailer Amazon.com released has preliminary data showing the company reached its sales goals in the last quarter of 2000, despite the slowing economy. Analysts said the news should put to rest concerns the company will need to raise more cash to survive through year’s end. But they also said Amazon’s sales growth was lower than expected, and that could lower estimates of how profitable it can become in the next three to five years. “Yes, they’ll live. Yes, they’ll be profitable, but not as profitable as some expected,” said Jeffrey Fieler of Bear Stearns in New York. Allyson Rodgers, an analyst with Ragen MacKenzie in Seattle, said she would not change her expectation that Amazon will start breaking even by the end of this year.