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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 226.76+2.5%Dec 18 3:59 PM EST

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To: H James Morris who wrote (14117)8/20/1998 10:33:00 AM
From: Rob S.  Read Replies (2) of 164684
 
The exact number is irrelevant, IMO. The inevitable entry into to the market of the mega brand name companies and mass marketers is an example of "flies being drawn to honey" - the internet is just now starting to attract the heavy hitters to compete with the early adopters such as Amzongonenuts.com. If many of these companies want to, they can afford to lose hundreds of millions of dollars per year for several years in order to squash the Amazon scarlet beatles - companies that have put on a glimmering outer skin that attracts huge amounts of attention to the stock but underneath the flashy exterior they are poisonous.

"But Amazon is more efficient than traditional companies". Yea, right. Efficient at losing millions and driving the company into debt and huge options commitments that will drive down the high-flying stock price. The internet is an "enabling technology" that allows content creators and manufacturers, such as Bertelsman, to cut out two levels of middlemen to sell directly to the consumer. Now that's efficiency; Bertelsman and other publishers and music producers through their own web sites and massive associates programs directly to the consumer. And that's just one company thqat will jump on the internet now that there is a sizable market to go after. Why didn't they start internet sites two or 3 years ago? Why, so they could lose money for three years? Amazon is the glamour queen babe in the woods (jungle) with only a roach-motel logo stamped towel around her for protection.

The stock is now feeding on the small retail customer and the pimping brokerages are more than happy to rake in huge commissions on the darlings of the sector; millions of shares per day are trading hands - hundreds of millions of $ per month in commissions are paying for Mercedes and trips to Fiji. To expect more "holds" or outright "sells" from these scam "advisors" to the small investor is like asking Clinton to keep his zipper shut.
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