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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 231.35+0.1%3:59 PM EST
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To: Bill Harmond who wrote (22929)10/25/1998 6:05:00 PM
From: zax  Read Replies (2) of 164684
 
>>So where's the sustainable competitive advantage???

Network effects. The bigger it gets the faster it gets bigger.

William, I think your understanding of the Internet is a little backwards.

The Internet network is a fault tolerant redundant network of a "million points of light".

1. I could set up a million discussion groups and boards on any of several servers that I run.

2. It costs me virtually nothing to do this.

This net effects of this ability talented individuals have to bring their own creations to the market (or for free) is to bring about decentralization of destinations, NOT centralization of destination.

Now, with this in mind, can you even begin to see the massive crashes that AMZN, YHOO, and several other Internet pigly lemon mania tanker sucker-fests are destined to suffer?

Not one of these sites offers anything that is best of breed and they are paying absurdly huge amount of money for average offerings of todays programmers. These offerings are highly duplicatable as well.

There is simply VERY LITTLE brand loyalty on the net... if I find a place that offers better products of services (or lower prices) I simply type in the URL.

I can create my own "eyeballs" by posting to boards, or submitting links (for free) to search engines. I don't even have to pay money to generate significant traffic.

William, PLEASE, before you lose your life savings out of a complete mis-understanding of what the Internet is and the beautiful thing it is turning our world into... COME BACK TO REALITY!!!

Regards,

-- Eric
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