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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.38+0.1%9:30 AM EST

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To: Glenn D. Rudolph who wrote (32219)1/2/1999 2:31:00 PM
From: Peter J Hudson  Read Replies (3) of 164684
 
AOL has, what William mistakenly attributes to AMZN, a franchise. When AOL signs up a customer there are significant barriers to another ISP capturing that customer. AOL did (is doing) a wonderful job of providing easy on line access. It has a nationwide footprint has impressive content of its own and is price competitive. Just not wanting to change email addresses is enough to keep many customers with whoever they first sign up.

AMZN has none of these advantages. I have purchased books & CDs from AMZN, but I don't consider them my exclusive online merchant. In fact my last experience using AMZN was less than satisfactory. Ordered "America's Greatest Generation" on 12/6 it did not ship until 12/16. They sent me an email when it shipped with no apology for the delay, just notified me that I got a complementary shipping upgrade. Like they were doing me a favor. I will shop elsewhere next time. There is no barrier to keep me from using another online book seller.

I believe both AOL and AMZN have unrealistic valuations at this time. The difference is AOL will probably eventually grow into theirs. AMZN will never be worth its current valuation and I believe the experts publicly justifying AMZN's valuation should be investigated. We are either dealing with ulterior motives or extreme incompetence.

I have been an SI member for quite awhile. I usually just lurk & learn. I've been reading this thread for a few weeks and I have to say it's the most fun I've had on line for a long while. Serious differences mixed with good fun and almost always civil.

Happy New Year
Pete
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