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

AMZN 239.16

+2.1%

Jan 23 9:30 AM EST

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To: Mark Fowler who wrote (60906)	6/6/1999 6:31:00 PM
From: Glenn D. Rudolph	Read Replies (1) of 164684

Glenn my point is "goes into infinity" doesn't make since to me. But i get your point. Amzn has chosen to be a very large scale operation and with competition moving in, Jeff realizes the need to capture as much market now to establish an enduring global franchise. They have stated over and over again, they will continue to make their investment decisions in light of long-term market leadership, rather than short-term profitability considerations to please the street. Mark, We both agree on this. The present occurance can change if the new fulfillment center make the cost of fuflillment less as a percentage of revenue. Under that scenerio, revenues would increase and fulfillment costs would not keep pace. This is the speculative possibility and there are many that believe in it. The prior methods of fulfillment would not work and management figured that out. Fulfillment was directly related to the revenue. Thus, the new automation that is so costly. I honestly can't say I know much about automated fulfillment. The large expenses are somewhat two fold if you will agree with this. One is to grow revenues as much as possible through whatever it takes. The other is to build fulfillment center that are far more efficient. If that works, Amazon will turn a profit. Please everyone do not attack me because I made the above statement<VBG> I personally do not believe fulfillment can become that efficient, Mark, William and others do. The growing revenues will occur. Almost no one is doubting that. Can we all agree on the above regarding the future of Amazon???:-))

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