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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 236.68-2.4%3:59 PM EST

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To: Mark Fowler who wrote (4503)5/19/1998 3:14:00 PM
From: Oeconomicus  Read Replies (1) of 164684
 
It's a management decision not to be profitable at this time.

Yeah, that's the story management is selling anyway. You know, EBITDMA and all that bull. Anyway, the question is not "can they make money now?" but rather "can they make money ever?". However, that's not a question they or their analyst buddies want to address. The idea is to continually come up with more stories to tell - to keep it a "concept stock". Eventually, they have to prove that it is a real business that can produce real profits. Then those potential profits have to add up to a whole helluva lot before the current valuation is even remotely justifiable. Hey, it has to add up to a lot just to cover their debts, forget providing a return to shareholders.

Bob
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