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

AMZN 237.58

-2.7%

Nov 13 3:59 PM EST

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To: Rob S. who wrote (35530)	1/20/1999 1:17:00 PM
From: AmericanDane	Read Replies (3) of 164684

Maybe people are coming to terms with (at least) two interesting ideas: 1. AMZN beat the top line expectation of $175 million by $75millionish and didn't revise analyst profit guidance. Assuming that means they are going to report the originally expected losses (calculated on the $175m guidance), they booked about $75million in sales AT NO PROFIT. Those last sales, as everyone knows, should be highly profitably having paid fixed expenses, etc. on the first couple hundred million -- but whose counting. 2. Even though AMZN in practice has long preceded ONSALE in the art of selling products while making no profit, no one thought a company would announce 'no-profit' sales as their business model. Its a mouthful to contemplate simply passing through wholesale cost for a service fee and just booking advertising as the profitably part of the business. Personally, I thought the software robots were the major to margins. Now we don't have to worry about that -- THERE WILL BE NO MARGINS AT ALL. Contemplate that against your $25billion market cap! -Dane

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