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

AMZN 226.19

-1.8%

Dec 12 9:30 AM EST

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To: Glenn D. Rudolph who wrote (27616)	11/22/1998 6:47:00 PM
From: Rob S.	Read Replies (1) of 164684

Barnes management said that they expected to increase expenditures for the Internet while reducing the roll-out of new super stores and increasing efficiency through the Ingram acquisition and other measures. They said that losses were expected from the Barnes~.com operations at least through 2001 as stepped up advertising and scaling up of facilities and personnel offset any profits. You can look at this as both a validation of Amazon's "buy now, profit later" business plan and a sign that they will very aggressively pursue market expansion. They advised analysts to visit the Barnes~.com web site and do side-by-side comparisons. And they said that Barnes plans to grow at higher rates in the future as they gain more share in distribution as well as Internet and traditional retails channels. Amazon is still enjoying the effects of being the first serious player in the ecommerce book and music categories. Now competition has positioned themselves to compete more aggressively.

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