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Technology Stocks : Internet Analysis - Discussion

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To: Chuzzlewit who wrote (257)	4/7/1999 12:17:00 AM
From: Dayuhan	Read Replies (1) of 419

no matter how much the company grows it will experience losses given the current business model. You cannot grow yourself out of this malaise. I don't pretend to understand the mathematics of this, but it agrees entirely with a purely intuitive assessment of mine: if you can sell $600 million worth of product and not make money, why should anyone assume that you can make money selling $6 billion worth of product? The fool analysis you quoted makes no sense at all to me; I can only assume that I'm dumb or there was some context missing. He seems to be saying that AMZN can dominate the market by reducing margins and keeping prices low enough to hound competitors out. Sounds almost like a Japanese idea, market share at the expense of profitability. I just don't see where it can lead but down; maybe my math is from the old school, but I've always thought that if you keep losing money, sooner or later you run out. Neither the growth rate nor the stock price can be maintained forever. BKS does look interesting: what percentage of their sales are online now, and what sort of growth rate is their online business doing?

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