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

AMZN 227.37

+0.3%

Dec 19 3:59 PM EST

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To: 16yearcycle who wrote (43900)	3/4/1999 4:30:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) of 164684

Eugene, >> Execution is what will count. AMZN has a huge head start as an internet retailing portal, and has a strong brand. What's the big deal in getting a head-start in selling at a loss. It seems any idiot can do that. Why not see if they can make some headway in selling at a profit ! I have an investment in a small convenience store. When it was starting out, the manager lowered prices to bring traffic into the store. Revenues went up explosively, but it was operating at a loss for a couple of months. Then he raised prices to generate profit. Revenues went down, but it is able to carry itself. Amazon will have to do same. In fact I have read that Amazon revenues are growing much slower than e-commerce revenues. Amazon might double revenues this year, but e-commerce will at least quadruple. So what are they leading in, other than losing money ? As I have said before, in reselling books one at a time to different addresses by mail, there are no advantages to scale beyond $1 Billion, or perhaps much less than that. The excitement over the drug announcement is just non-sense. The traffic of UPS and Fedex trucks on my street is noticeably higher lately. Do you know how long it takes to deliver each package ? Much longer than it takes to stock a supermarket's shelf with same items. So where is the efficiency ? There is a good reason why Dell succeeds as a mail order house. They have nothing to do with e-commerce. They don't sell commodities. Amazon sells nothing except commodities.

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