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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 239.16+2.1%Jan 23 9:30 AM EST
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To: Glenn D. Rudolph who wrote (134972)11/19/2001 10:04:01 PM
From: Bill Harmond  Read Replies (2) of 164684
 
No, DC's in and of themselves weren't a mistake, and they had cheap capital to work with. They believed that building out was smarter than doing it incrementally, and the strategy was marketshare gains...head competitors off. They did that sucessfully. They killed key competitors like eToys and CD Now.

However, they did end up with excess capacity as the Fed took away the capital gravy train in 1999. So in 20/20 hindsight they overbuilt capacity. Was it right or wrong at the time? We'll never know. The Fed surprised everyone with their totally boneheaded move to fight inflation that didn't exist, and kept the reins in during a constitutional crisis.

Amazon acomplished plenty in the process and built an enduring brand which makes their front end an important franchise, and the leading etailer.
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