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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 248.41+1.6%3:59 PM EST

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To: Alomex who wrote (10846)7/19/1998 8:35:00 PM
From: Rob S.  Read Replies (1) of 164684
 
I agree that Amazon.com is not a "condemed failure". It will probably be a successful retailer and will grow quite rapidly. But what has been assumed by investors is that the company can reach high levels of profit by carving out internet real estate. Mass retail is a low margin business any way you cut it. Some studies on the internet, including my own, predict that e-tailers will be subjected to more intense price competition than any other venue. That sugests that Amazon.com will have lower margins rather than the higher margins than what is already needed to justify the current stock price. (of course a lot of what drives usAmazon.com has been caused by momentum players who could care less about anything except which direction and with what momentum the stock is moving),

Amazon.com could be the greatest young start-up e-tailer company in the world but after investors become tuned into the fact that they will not achieve the profits needed to justify $6 billion valuation, the stock will fall.

Go Amazoniankiddingthemselvesnuts.com!!! On to 130!!!
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