Amazon.com, Inc. (AMZN) Message Board

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

AMZN 247.35

+0.4%

Jan 9 9:30 AM EST

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To: Mark Myword who wrote (4532)	5/20/1998 1:31:00 AM
From: Mark Fowler	Read Replies (2) of 164684

I must say that the view you and others take of AMZN is, IMO , flawed. They are building market share, but it won't lead to profits due to the nature of the hyper-competitive pricing environment they face. Just to tag them as an "emerging company" does not excuse their failure to generate profits now or in the future. They burn cash and will face even more losses as time goes on.<< William, i've stated this before i don't expect stable pricing conditions for a long-time and this is an issue, since a price war may be coming as the traditional booksellers join the online fray. But it would be a mistake to focus on profits at this point. Your competition will vie just as hard for that market. That's why management is burning that cash, investing it back into their business before their competition moves in. And they're moving in fast. Amzn has a lead of 6-12 months in online bookselling know-how. And that might be the edge that they need to become profitable in the future. But no one knows for sure yet when they will become profitable, if ever, accept maybe CEO Jeff Bezos, formerly with the investment bank D.E. Shaw, is a brilliant CEO and self-promoter, and a handful of his top rank and file. By the way i got a kick out of your analogy of comparing selling books online through Amzn to selling chickens through some third rate, fast food joint? Come on please! But your point well taken. Mark

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