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

AMZN 232.56

-0.8%

3:10 PM EST

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To: Jeff Dryer who wrote (72463)	8/6/1999 7:42:00 PM
From: Lizzie Tudor	Read Replies (1) of 164684

I've read Blodgets statements along these lines and there is something missing in this article... he does not expect equal category penetration along all retail lines, so for example books/CDs etc. could be represented by the online retailers at 50%, other items less than 5% - he has stated that Amazon is entering those markets where opportunities are greatest therefore greater than 5% penetration of overall market is likely. I'm not defending Blodgets argument but just offering a clarification. I agree with him that toys and books/CD/Video will go majority etail. Its just a better retail experience. The weaker players will drop out and Amazon will be left according to his hypothesis. We expect, for example, that online retailing will eventually amount to about 10% of the total $2.3 trillion annual retailing market, or about $230 billion. maybe... Amazon.com has clearly indicated its intention to be involved in most aspects of this market, and in most markets, the industry leader usually ends up with 30%-40% share. What is Wal*Mart's market share of the $2.3 trillion annual retailing market (Henry Blodget's estimate)? Isn't it about 5%? So, why does Henry Blodget expect that Amazon.com's share of the online retail market is going to be greater than 5%? Henry Blodget is EXPECTING 30% PLUS????

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