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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.38+0.1%Dec 24 9:30 AM EST

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To: Robert Rose who wrote (125105)5/16/2001 10:45:48 PM
From: Glenn D. Rudolph  Read Replies (1) of 164684
 
"In online bookselling, Mr. Blodget estimates it costs Amazon.com Inc. of Seattle, Wash., about $50 million to $100 million a year to develop and maintain its Web site. "

Blodget is Merrill's analyst for Amazon. He also received his reputation (what that is depends on one's perception) by causing a short squeeze of the Amazon stock in 1998.

It seems to me that there is a fair amount of difference between $50 million and $100 million. How can one project earnings or losses if one does not evne know what the cost of one aspect of the operation is within 100%?
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