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

AMZN 233.22

+1.8%

Nov 28 9:30 AM EST

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To: Bill Harmond who wrote (38290)	2/5/1999 6:12:00 PM
From: Glenn D. Rudolph	Read Replies (1) of 164684

Not at all. The more Amazon sells, the less they lose on each piece. William, We are increasing the denominator and in fact are increasing the numerator too. The difference is the denominator is growing faster than the numerator. As long as the numarator continues to grow or even continues to exist, what difference does it matter how large the denominator may be? This is the story Covey likes to sell. In reality, it is garbage. The denominator will continue to grow but will will also always have a negative numerator. Fulfillment costs exceeds gross margins. That is a simple concept. I do not know how many times I need to explain this. Glenn

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