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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 204.01-1.4%Feb 11 3:59 PM EST

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To: Randy Ellingson who wrote (105211)6/22/2000 2:33:00 PM
From: Glenn D. Rudolph  Read Replies (1) of 164687
 
Anyone have a guess as to when AMZN will hit annual sales of $50B?

Randy,

I have a very small long position in AMZN. Don't ask why because I have no good reason for it. The question should be, when will Amazon turn a real profit from operations. I still believe that is impossible without a brick and mortar presence. Wal-mart already has the brick and mortar presence and I can tell you with centainty that making a good on-line prsence is far easier when one has an established brick and mortar brand.

I advertise my web site via my brick and mortar locations and incorporate the site URL in my regular advertisements. We are currently projecting revenue of $800K during the first on-line fiscal year with net operating profits of 6%.

Barriers to entry for e-commerce sites that have a strong brick and mortar presence are very low. Amazon has a real problem here.

I have called the fundamentals of Amazon correctly for almost three straight years and I do not see them on the path to profitability. In fact, I see the FA becomming worse.
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