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Technology Stocks : Amazon.com, Inc. (AMZN)

AMZN 227.85

+0.4%

12:39 PM EST

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To: Glenn D. Rudolph who wrote (53665)	4/28/1999 10:01:00 PM
From: tonyt	of 164684

Bezo's Business stratagy finally revealed!: "Mr. Bezos and Ms. Covey portrayed future losses as part of Amazon's long-term strategy." If this was their short-term strategy I might understand, but this is their long-term strategy?!! "If Amazon didn't spend heavily to build its distribution capability and marketing, Ms. Covey said, it would be forgoing chances to build greater eventual value for shareholders." "Nonetheless, one of Amazon's most-talked-about initiatives to improve efficiency -- building big, automated warehouses to handle shipments of books, movies and videos -- is more likely to hurt than help profit margins this year, the company said. That is because these facilities have huge fixed costs and will be operating at only a fraction of capacity at first. Amazon has begun shipping from a 75,000-square-foot warehouse in Nevada and recently leased an even-larger site in Kansas that it plans to expand."

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