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

AMZN 229.40

+0.1%

3:15 PM EST

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To: Randy Ellingson who wrote (24857)	11/7/1998 12:55:00 AM
From: Rob S.	Read Replies (1) of 164684

< I think their internet-only strategy makes them a more obvious and trusted choice for many netfolks> What Internet only strategy? Are you serious? Do you read what the company and analysts have said about Amazon's business and plans? I think not. Just a few facts (many more can be made and pointed to): - Bezos/Amazon.com has said that they will need to spend heavily in order to build distribution warehouses, service facilities, etc. to compete more effectively and lower costs. - Amazon has hired several logistics people from WallMart to facilitate more vertical integration. (Don't tell me they were all hired to surf the web!). - The company has increased inventories but gross margins have NOT increased because, according to Covey and Bezos, the costs of handling, holding, and other costs have gone up proportionately. Amazon's operations requires a tremendous amount of waste and duplication of efforts compared to what will be possible with a more fully integrated company. Why did Bezos issue today's statement if not because he fears the consequences of Barnes and Nobles strategy? Maybe he just had some free time on his hands and wanted to sound off to his investors.

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