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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 222.94+0.2%2:36 PM EST

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To: Ram Seetharaman who wrote (106596)7/27/2000 2:27:32 PM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 
They have $ 908 million in cash. So by crude calculations they will have about $ 258
million in hand, when they go to the final quarter of 2001, when I expect them to be profitable
and stay profitable.


Ram,

You thoughts are well taken. I do become very fuzzy in putt in place a spreadsheet showing profitability in 2001 or at any point in time.

The two largest problems I see are:

1. Fulfillment centers are leased, expensive and the cost of fulfillment is going to continue to be far too high to allow profitability.

2. Growth may only be acheived via large marketing costs. Otherwise, there will be no growth if not shrinkage.
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