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

AMZN 248.73

+1.8%

3:07 PM EST

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To: Glenn D. Rudolph who wrote (10855)	7/19/1998 8:55:00 PM
From: Alomex	Read Replies (4) of 164684

They now are giving away (selling) three books for a penney to a new customer. But this could change on a whim! For example, AOL bled money like crazy giving people free coasters... erh, I mean diskettes. But at some point AOL stopped giving floppies away and started reapping the benefits of having become the number one on-line service. (anybody out there remembers the times when compuserve was larger than AOL?) When everybody and their brother has opened an account with Amazon, when AMZN ships so many books that they can squeeze extremely low prices from DHL/Fedez or UPS, when they have large, automatized warehouses and on-demand printing facilities, then they will jack up the prices/have better margins and all of a sudden the business model makes sense. I agree with Rob S. that margins will always be puny and possibly never justify the 6 billion market cap, but AMZN will not chapter-11 in the foreseeable future.

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