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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 222.55-1.6%Dec 15 3:59 PM EST

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To: yard_man who wrote (7206)6/23/1998 5:22:00 PM
From: Alomex  Read Replies (2) of 164684
 

2nd point. Competition.

KO has lots of competition, yet you use it as a show of a strong company.

consistently AMZN is not the lowest price.

Indeed, but a couple of years from now as sells continue growing, AMZN clout with publishers may be such that their prices are unbeatable.

Don't get me wrong. This company is groslly overvalued, but it doesn't have collapsing fundamentals. In fact, I like this business model better than Yahoo's. People do buy books and have been doing so for centuries, while I'm not yet convinced that people will make portals their first stop on the net. Once you bookmark your favourite sites, searches are rare. (Yahoo will have to buy content at some point. Buy the house to go with the portal, so to speak.)

I do agree with you that the competition will be mostly on terms of price, and I have said in the past that AMZN should consider itself lucky to post 6% profit margins if that much.
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