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

AMZN 228.44

+0.5%

Dec 22 3:59 PM EST

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To: Eric Wells who wrote (74843)	8/21/1999 10:13:00 AM
From: John Donahoe	Read Replies (2) of 164684

RE: His approach is to essentially state "Trust me - we can forego profits now to capture market share" - leaving the investor to assume that Amazon will be profitable at some point in the future. He has basically offered a investment proposition that says in the near term it is more important to capture as many customers as possible while the "iron is hot". To do that requires massive investments in infrastructure and customer service that is second to none. Amzn will remain focused on the top line not the bottom line for the foreseeable future. This is not an investment for the faint of heart. RE: In my view, good CEOs tend to under-promise and over-deliver. Bill Gates is notorious for making statements warning of declines in Microsoft's future profit and sales growth - yet Microsoft's profit and sales grow every year. Apples and oranges. A better comparison may be AOL. RE: But Bezos has taken Amazon and the investors that believe in him and put them out on a very thin limb, what with a high level of debt and mounting losses. They walked out there with their eyes wide open. No one put a gun to their head. RE: Those that believe in Amazon state that Amazon's current high level of spending, on marketing and advertising in building a strong brand and in expanding into new retail sectors, is necessary for the company to experience tremendous success long term. But in truth, there are tremendous risks in their strategy. It goes without saying. RE: Amazon may succeed - and they may be hugely successful. But their current stock price is a result of investor mania - a mania that is driven by an overly-optimistic view of an uncertain future. Not a mania. It's high risk speculation in a revolution.

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