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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 229.41+1.5%3:22 PM EST
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To: Glenn D. Rudolph who wrote (44298)3/6/1999 5:33:00 PM
From: Sarmad Y. Hermiz  Read Replies (2) of 164684
 
Glenn,

Is there a bookstore or music store or video store business (physical or virtual) with less than $1B ann sales that is profitable?

If there is, that would dispute Amazon's claim that profits must be preceded by gigantic scale.

I know music stores and video stores in Michigan that are profitable at much smaller scale than Amazon, though I don't know whether the on-line merchants may put them out of business.

Best Buy in our area has a large music department. I don't know their financial condition, but they don't seem on the verge of bankruptcy. And as far as I know, they do not sell their wares at a loss, since they are expected to earn $200M profits in '99. If their music sales were not profitable, I don't think they would devote 50% of the selling space to them. Yet, one of the excuses of Amazon's increased losses is that music sales carry lower margins.

Also, I don't think Wal-Mart sells their music at a loss, either.
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