Im not a long term holder here, and am not a bull on AMZN... but I dont get the pure comparisons of AMZN to BKS.. and how "AMZN is shaking in their boots from BKS".
AMZN started with books... went to music... videos... DVDs.... auctions.... pets.... drugs....(read: Diversified revenue streams)
BKS has books... books... books.... books.. and software...
BKS has bricks and mortar which the bulls on this board seem to claim as a benefit, but the street obviously does not AGREE as seen by the perspective market caps.
AMZN has 1st mover advantage, they have brand loyalty... when I buy a book online thats the first place I look.. even if I could get it for $2 less at BKS... same with Yahoo.. its my home page because its where I started a long way back.. Lycos could be better, so could Excite.. so could Alta Vista, but Yahoo is the 1st mover and people use what they are use to.
Im not arguing AMZN is better or BKS is better or BKS is undervalued or AMZN is undervalued. I just dont see the arguement about how its a directly parallel comparison (you can only compare BKS book selling on the internet, to AMZN book selling on the internet and that is ALL) BNBN does not have the diversity of AMZN and as such shouldnt even approach the value of AMZN in my opinion. (but even 1/3rd of AMZN's market cap would be huge!)
Neither makes money, but AMZN has a lot more revenue and sales than BNBN in BOOKS ALONE.... and that doesnt include all their new various revenue streams they have added in the past 6 months....
Reminder.. I don't own stock or options in AMZN.. (so dont say BKS BASHER!) personally I dont see how they will ever make money ... huge volume (revenue) tiny margins... still doesn't make sense as a business model to me. I prefer the CNET's, INKTOMIs of the internet world.... However, I see many posts here by rabid bulls re: "BKS will eat AMZN's lunch" and since they are never refuted I thought Id throw my "negativity" on the board...
And yes I do own BKS.. I am just trying to put some perspective on this board... in which every day for 3 weeks now... I see American Spirit post "this is probably the last day to get in at these prices, Im looking for a run up this afternoon... how could anyone sell?" In fact, BKS is a sleepy stock... has been for a long time... and until the traders move here for a 5 day period, will remain so... and after the iPO BKS will remain a sleepy stock which will correct downward while all the "happy go lucky money" flocks to BNBN. I hope its a really good 5 days myself!
Just 1 man's opinion, don't flame until 1 month from now if Im proven wrong ;)
Mark |
