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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 254.06+4.0%Nov 3 3:59 PM EST

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To: put2rich who wrote (11342)7/22/1998 6:13:00 PM
From: William T. Katz   of 164684
 
Revenue growth is *never* sustainable once you get the revenue large enough. This is true for every single business. The real question is whether they can continue revenue growth even at annual 150%.

I agree the entry barriers to bring up an e-commerce site is minimal, but the entry barriers in advertising and partnerships (Quicken, associates) is high. That said, there are only a limited # of players that can challenge Amazon and they include B&N, Borders, Bertlesman, and even Wal-mart. I do see my friends, though, ordering from Amazon just about every week.

The stock is overvalued but more than valuation has been driving this puppy for quite some time.
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