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

AMZN 229.34

+0.1%

12:14 PM EST

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To: Sarmad Y. Hermiz who wrote (54224)	4/30/1999 8:58:00 AM
From: Wayners	Read Replies (2) of 164684

Do you understand the difference between a company that CAN make a profit anytime it wants to and one that no matter what they do CANNOT turn a profit. AMZN can be profitable right now by cutting marketing and advertising expenses to ZERO. They don't have to make those payments. They are taking those "elusive" profits that you have a perception that they are unable to make, i.e they have done everything they can do to be profitable and aren't. Do you understand this? There is a big difference between an Iridium who CANNOT turn a profit and AMZN who is instead investing their profits to obtain future growth, punishing current earnings. I have to hand it to Bezos not to give into short term Wall Street ideas. Do you understand the profitability difference over time between a company with 1B in Revenues with a 25% margin and one with 5B in Revenues with a 25% margin? What are the sums of the two earnings streams when compared to each other, with the 5B earnings stream cut back by a few years? The second earnings stream IS MUCH LARGER. DO YOU UNDERSTAND THIS?

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