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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 232.37-0.9%Dec 3 3:59 PM EST

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To: Bearded One who wrote (56153)5/9/1999 5:28:00 PM
From: Lizzie Tudor  Read Replies (3) of 164684
 
Will someone here care to explain why Amazon is worth even 5 billion dollars?

Bearded One, I haven't seen you on this thread before so pardon me if I am stating the obvious.... the value proposition with Amazon and Dell is that they apply tremendous automation resources to their supply chain and eventually squeeze everybody else out of business 1/2% savings on cos at a time. Eventually it becomes too expensive for anybody else to compete, niche players are eliminated etc. and they own the market. Low profit margin goods are a critical part of the equation, the fact that incremental savings to the bottom line (which is what you get with technology) can make an overall difference, etc. I don't know what amzn is worth at this point, on a relative scale certainly more than $5 bill. as you attest, depending on how far along they are with their infrastructure. But they need to grow into their current mkt cap I agree.
Michelle
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