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

AMZN 231.69

+1.7%

Dec 10 3:59 PM EST

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To: Victor Lazlo who wrote (29379)	12/8/1998 10:04:00 PM
From: Glenn D. Rudolph	Read Replies (2) of 164684

From the Wall Street Journal Voice: WSJ_Host presents the speaker with question #93 from grudolph: John, Backtracking to Amazon. The 10Q shows that their fulfillment costs exceeds their gross margins. Therefore, without greater gross margins or reduced fulfillmen costs, profit is impossible. Are you sure this is a viable business model? JHagel says, "I'm not prepared to comment on the details of Amazon's economics. More generally, I think there are opportunities to improve gross margins and to reduce fulfillment costs as Amazon builds scale."

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