Amazon.com, Inc. (AMZN) Message Board

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

AMZN 237.58

-2.7%

Nov 13 3:59 PM EST

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To: Fen Rhodes who wrote (61)	6/10/1997 1:50:00 PM
From: Shege Dambanza	of 164684

A price war is good for Amazon? Hello? Is anyone thinking out there? Even cursory analysis will reveal that a start-up is more likely to be adversely affected in a price war, than a behemoth. As for stock prices, follow this train of thought: Stock prices are based on expectation of future earnings. Margins will go down in a price war. Volumes will probably not offset the margin loss to meet earnings expectations. Earnings will fall. Stock price will fall. Don't count on the price decrease to increase market share.

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