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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 229.60+1.5%3:59 PM EST
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To: Mark Fowler who wrote (61007)6/7/1999 12:46:00 PM
From: Rob S.  Read Replies (1) of 164684
 
This number masks a deceleration in Amazon's growth and a shift in the number to include auction participants. The number of registered "customers" has grown from about 3.2 million in June of '98 to 4.4 mil in Sept (38%), 6.5 in Dec (47%), 8.2 mil in March '99 (25%), and maybe 10.5 at the end of this month (28%). There are a couple of things wrong with considering this number a continuous progression from last year's lofty growth rate: The aggregate growth rate has declined from previous rates before acquisitions took place. Auction activity includes many bidders who are only fishing for low prices and don't buy. And auction sales generate only a fraction of the revenue as direct sales - Amazon collects about 4%-5% per auction dollar.

Without the addition of registered auction "customers", Amazon would likely report much smaller growth numbers. Amazon does not break out their sales or make-up of registered customers so attaching much importance to this "news" makes little sense. In any case, this report "seems hollow" and is unlikely to have much impact on analysts or investors thinking. If Amazon were to break out their sales and define the number of auction customers, then the report would be able to be analyzed more clearly. The only reason for them not to do so, despite their protestation that this would give competitors useful information, (come on, competitors can extrapolate this stuff as needed), is to keep the growth clouded in mystery so as to delude investors, IMO.
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