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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 216.19-0.4%10:37 AM EST

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To: Glenn D. Rudolph who wrote (50757)4/16/1999 12:29:00 PM
From: Greater Fool  Read Replies (1) of 164684
 
Amazon is not fixed costs as is YHOO or EBAY. The cost of fulfillment increases with the increase in business. That includes wharehousing, cost of goods sold, etc. This is not true with EBAY and YHOO.

Right, that's why I said "many" and not "most". There are some net companies that are directly involved in physical products, but aren't they the minority? Aren't the rest like broadcast, excite, lycos, vertical.net, etc etc?

Anyway, it's not much of an issue. It just struck me that there are lots of companies with mostly fixed costs (e.g. semiconductors) that don't command stratospheric market caps.

I'll bet Yahoo ends up having a much larger variable cost component over time, as their marketing costs will rise in pursuit of ad revenue. Them super bowl ads ain't free, you know.
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