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

AMZN 236.87

-0.3%

12:53 PM EST

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To: Bill Harmond who wrote (113229)	12/24/2000 9:15:09 AM
From: Glenn D. Rudolph	Read Replies (3) of 164684

Amazon is the last pure-play standing. Bill, You are correct; Amazon is the last pure play standing. The reason is obvious. They were able to raise more cash than any other so they have not burned all of it yet. The fact that there are no more pure plays standing and Amazon is still buring cash extremely quickly is proof that a pure play retailing business model does not work. At least sixt other pure plays that are now gone prove that. but the customer interface and service they have will keep the users coming to the site. Maybe?? New users of any large numbers are doubtful. Many exisiting users may move to bricks and clicks. In either case, no profit can be made with these users. I suspect the users are not going to the site due to the interface. They are going there due to free shipping, lower pricing and decent fulfillment service. I do not believe anyone cares about the interface. I noticed a group of people sitting around a computer terminal the other day saying let's go to the Amazon site. We really like the interface. Let's get real here. or or a ship direct from manufacturer model like Cisco's Huh? This is the most rediculous statement I have read. Amazon started trying to use a ship direct from Manufacturer. Since Amazon is not a manaufacturer, they found that model did not work so they built distribution centers to hold their inventory. Manufacturers of consumer goods are not going to hold inventory on Amazon's behalf. Manufacturers have lower gross margins than retailers and they certainly do not want a retailers turn on inventory with a manufacturers margin. This is a proven fact. The comparison to Cisco is uterly ludicrous. Cisco does in fact manufacture their own products. Why not compare the model to Dell's? Dell manufactures their own products too. Your lack of understanding of this model is concerning. You are a cemnenthead. Try looking that the changes and you may understand some day. But Amazon is still standing, still well-financed, and has a premier brand in general retailing now. Amazon is far from well financed now. They need cash and very soon. Do you believe the equity or bond markets will provide more? Amazon will have no cash at all by the end of Q3 2001 unless they can raise some. The story is over Bill. You called this one incorrectly. You errored and it is clear by the performance of this firm you errored. Also, the market is seeing you errored too. Glenn PS Have a nice holiday.

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