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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 247.35+0.4%Jan 9 9:30 AM EST

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To: Tom D who wrote (27607)11/21/1998 11:05:00 PM
From: Dwight E. Karlsen  Read Replies (1) of 164684
 
>How much of a decline in demand for commercial real estate does it take to cause the prices to collapse? A few AMZN distribution centers take up a lot less room than thousands of Barnes and Noble stores.

At present the majority of people still don't believe that a major shift in a fraction of commerce over to the net will make a lot of small land-based businesses nonviable.
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Tom: In case you missed it, the "major shift in a fraction of commerce" has not happened yet, at least to the extent that you hope for. B&N just reported 4-5% year-over-year same-store sales at its superstores. How do you explain the fact that Amazon is not taking share from B&N? I believe that it is like this: Many people don't live conveniently near a metropolitan center:

1) People in the armed forces at remote bases or overseas. The U.S. armed forces in Bosnia, for instance, certainly appreciate being able to buy online: They have no other alternative.

2) Rural areas. If you have to drive 30 miles to get to a good bookstore, internet bookstores are going to look pretty attractive in terms of utilizing one's time efficiently.

3) Americans living in foreign countries (particularly 3rd world countries) for whatever reason: employment related, missionary work, whatever.

And you think that Amzn is going to drive a collapse of commercial real estate in the U.S.? >>How much of a decline in demand for commercial real estate does it take to cause the prices to collapse? A few AMZN distribution centers take up a lot less room than thousands of Barnes and Noble stores. <<

With all due respect (which admittedly isn't much at the moment), GET A CLUE!!
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