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

AMZN 229.12

-0.2%

Nov 26 3:59 PM EST

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To: H James Morris who wrote (40137)	2/15/1999 12:18:00 AM
From: Curlton Latts	Read Replies (2) of 164684

>>It's all in their revenue growth, stupid!<<< ....................This reminds me of the "$20 bill strategy". If I started up a Company right this instance at my PC selling $20 bills for $19 how quickly would my revenue stream grow.........Well, the answer is pretty damn fast. In fact, I could probably become a $1 billion company in less than a month! If investors were willing to accept my $50 million loss on the $1 billion under the assumption that I was on my way to becoming a $10 billion company given my revenue growth then I would be in like Flynn. You would be surprised how many actual instances of variations on the "$20 bill strategy" happen in the real world all the time. Eventually Finance gets control of the company from Marketing and cleans up the mess. The most important factor impacting capitalistic businesses and industries is...........ta da....Competition...and second in importance, although probably first as a required premise, comes Supply/Demand. As a result, inevitably, Marketing is held ahead in importance and given more power than Finance. Marketing is about selling - the more the better. All goes well until the level of competition makes it impossible to be a successful marketer without losing money on additional unit volume. In other words volume gains at the margin are at the point where marginal unit cost exceeds marginal unit revenue. The mania comes in when the capital markets are willing to overlook this basic principal. Good Luck To Each And All Curly ~~~~~~~^^ [6.6] .....> [_]

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