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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 238.17+0.6%Jan 15 3:59 PM EST

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To: AugustWest who wrote (30362)12/17/1998 5:37:00 PM
From: KeepItSimple  Read Replies (3) of 164684
 
> Oppenheimer had a better argument,IMO.

What argument? Blodget was destroyed, although the ML guy could have made a better case with a simple statement.

The average retail margin on all goods and services is roughly 5-6 percent. And this is for companies that have been in business for years and years and years. The only exceptions are certain luxury items such as Jewelry and perfumes. Wal-Mart, which sells every item Amazon could ever hope to sell, has a margin under 5 percent and they are widely regarded as having the most effecient retail model on the planet. And they are quickly moving online. Yet for Amazon to meet TODAY's market valuation, analysts have to predict a 10-20 percent margin on Amazon's sales. And Amazon has already proved its margin on books is around NEGATIVE 20 percent.. (they lose money on every sale, when aggregated)

Would someone please point me in the direction of the substance these analysts are smoking? It must be some incredibly powerful stuff, and would certainly be fun at parties.
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