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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 230.27-0.6%3:59 PM EST
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To: craig crawford who wrote (16971)9/12/1998 8:57:00 AM
From: llamaphlegm  Read Replies (1) of 164684
 
Craig writes:

<<<If AMZN loses $50 million to achieve 2.5% market share, will they lose $150
million to get to 7.5%?>>>

Of course not, Craig and stop being so easy on the bulls.
AMZN lost $50mm with no competition. Bezos tells us himself that the competition is now fiercer, that he does NOT expect marketing expenses to decrease (ie they will have to wratchet up probably), and the marginal cost of attracting that incremental user and RETAINING her/him goes up accordingly.

LP
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