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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 231.69+1.7%Dec 10 3:59 PM EST
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To: llamaphlegm who wrote (16977)9/12/1998 9:09:00 AM
From: llamaphlegm  Read Replies (2) of 164684
 
William writes:

<<<That statistic showing Amazon losing $8
on every sale is misleading. It falsely implies that Amazon isn't progressively achieving
advantages of scale.>>>

Where in the world are you getting ANY data to back this up????
The estimates contradict you. Bezos in his own words, contradicts you. (MAybe they save a little on book orders, but the marketing expenses keep going up).

Finally, let's assume that you're 100% right for BOOKS. Does this mean, that amzn will once again have to spend like mad to achieve those great economies of scale in music and software, and videos, toys etc.??? Or will folks magically choose to come a site that still advertises itself primarily as the "world's largest bookstore" and ignore all those companies that are exclusively music (I could list the top 5 -- none of which I'm sure is amzn) or softare or videos.

William:

You (once again) chose to ignore a reasonable question (a habit you sometimes share with TMF). Is AMZN's partnership with YHOO a competitive advantage or not?

If so, then these very expensive alliances matter and will limit amzn's future market share in every market (as bks links up with aol, the nyt's etc, cdnow links up with yhoo, and EVERY competitor in each industry that amzn enters does the same -- ya see, amzn is now choosing to fight a multi-front war before it's won on any one front)

If not, then amzn is burning a large amount of money for no reason.

You make the call.

LP
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