Amazon.com, Inc. (AMZN) Message Board

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

AMZN 239.30

-1.0%

Jan 30 9:30 AM EST

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To: Saul H Rosenthal who wrote (22718)	10/23/1998 10:15:00 AM
From: Oeconomicus	Read Replies (1) of 164685

Ah, but WalMart does, in fact, sell books. No one disputes the fact that AMZN has shown incredible growth in revenues. What us bears do dispute, at least I do, is whether AMZN's business model will ever generate sufficient profits to justify a valuation at even a small fraction of the current valuation. OK, so they went from nothing to perhaps $500 million in revenues, but how many $500 million companies can you think of that are still a couple years away from their first profits (if they ever get there)? Do you think they will be able to raise prices whenever they decide that it's time to start showing a profit? Or, that they will reach some magical point where they no longer have to spend money on marketing? Do you really think that all the well financed competition that's targeting them now is just going to give up and say "OK Jeff, you win; and take our customers too." Yeah, that happens all the time - unprofitable, heavily indebted companies always win out because profitable, well capitalized competitors just give up.

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