Amazon.com, Inc. (AMZN) Message Board

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

AMZN 229.12

-0.2%

Nov 26 3:59 PM EST

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To: GraceZ who wrote (151034)	12/27/2002 3:15:05 PM
From: Lizzie Tudor	Read Replies (1) of 164684

I think that more and more will come to the realization that they are better off letting AMZN run their online stores and provide fulfillment services. This is their true growth path, not low margin books they started out with and it's only just beginning. The business looks bad enough that it doesn't attract much in the way of competition. This is exactly my point and imo the entire reason Amzn stock has rallied this year. This year amzn morphed from a retailer to a retail portal. It is somewhat ironic because I was once told their original business plan was to be just that, a retail portal with no direct fulfillment. That didn't work at first so they decided to hold inventory, then they went overboard and added too much fulfillment capacity... and now here we are again back to square one. The difference from what I can see between a retail portal and a portal is it is product driven with retailers lining up by general sku. That is my take on it anyway. Amazon is doing well with this, if they can hold circuit city who has their own site then there is definitely a value add with amzn. The product logistics are the wildcard. Right now amzn has extensive logistics and profitability in that business, similar to Dell. I'm not sure how that area of the business will grow in the future or if it will. This is the traditional retailer side. This year CNBC gave all this airtime to Holly Becker when she downgraded amzn at the beginning of the year (at $8) because they were more expensive than other traditional retailers. Where is the outrage about this disastrous call, is what I would like to know. It was obvious then that Amzn was not just a retailer. It will be interesting to see if amzn can grow their margins to yahoo levels. L

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