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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: Chi Ligh who wrote (64)	6/11/1997 10:18:00 AM
From: Candle stick	of 164684

Online bookseller Amazon.com to slash prices by as much as 40 percent NEW YORK _ Online bookseller Amazon.com announced Tuesday it will slash the price of many of its books by as much as 40 percent. The move was aimed squarely at intensifying competition with rival Barnes & Noble, which also sells books in cyberspace. But Barnes & Noble said it won't match the price cuts. The discount deal is also aimed at dispelling concerns among industry executives and consumers that selling books over the Internet isn't a lucrative business. The upstart Amazon.com, which went public last month raising $54million, must build sales quickly to prove otherwise. The company said hardcover discounts will start at 30 percent; paperbacks will be discounted at least 20 percent. On select titles, discounts will be up to 40 percent. The move will affect 400,000 of the 2.5 million titles in the company's catalogue. Amazon.com's new prices will meet or beat the prices for many current best sellers that Barnes & Noble sells on its own site. BarnesandNoble.com advertises set discounts of 30 percent off for hardbacks and 20 percent for paperbacks. Which service has the best price will depend on the particular book. A quick check of five best sellers by the Daily News showed Amazon ahead of its rival. The best-selling ''The Bible Code'' sells for $17.50 on Amazon and $25 on Barnes & Noble's site. ''With these prices, Amazon.com offers the lowest everyday book prices anywhere in the world, online or off,'' said Amazon CEO Jeffrey Bezos. But Barnes & Noble chief operating officer Steve Riggio argued that it was unfair to judge his prices on best sellers, saying that most online sales were for lesser-known titles. A paperback copy of the sci-fi classic ''A Canticle for Liebowitz'' was $11.95 at both. Amazon.com got a cool reception to Tuesday's discounting on Wall Street. Its stock fell 1 1/4 to $19. (c) 1997, New York Daily News. Visit the Daily New online at mostnewyork.com Distributed by Knight-Ridder/Tribune Information Services. AP-NY-06-10-97 2100EDT< -0- By George Mannes New York Daily News ---------------- I suggest shorting BKS, as most of the recent price rise was due to the internet hoopla. Now AMZN will squeeze thier margins to gain market share. Remember that AMZN is a startup and has never made money and is not expected to YET. They are taking advantage of this to try and destroy thier competition first. BKS is grossly overvalued especially given the number of companies now selling books over the internet. It will take customers away from the stores, especially when they see how much cheaper it is. Its those regulars that move to internet buying that will kill BKS. They have huge overhead and expenses where AMZN has none. Down the road AMZN will end up the pure play and the internet leader.......in my humble opinion....short BKS and wait to buy AMZN......;^)

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