Amazon.com, Inc. (AMZN) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

AMZN 220.66

+1.6%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Glenn D. Rudolph who wrote (51038)	4/18/1999 2:15:00 PM
From: Rob S.	Read Replies (2) of 164684

Glenn, I think that Amazon will be able to reduce costs sufficiently to become profitable in a few years. I don't think they will run out of money. They have over a billion in cash now and are paying for acquisitions mostly with stock. Right now they are spending for new facilities and acquisitions and heavy promotions, including the give-aways. That seems like a treacherous approach to business. It would be if it weren't for the fact that this dramatic approach has attracted such attention and sales momentum. People may like to think of themselves as unique individuals, but in our hearts we are more like lemmings herding in the same direction, particularly when something is new. I think Amazon will continue to expand their "brand franchise" to include many other product and service areas. But in 2-4 years when they scale back growth to reduce costs, the bottom line will be thin margins that will be hard pressed to support the stock at near the level investors are willing to reward the company with now.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next