Amazon.com, Inc. (AMZN) Message Board

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

AMZN 225.40

-3.2%

10:14 AM EST

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To: Art Bechhoefer who wrote (59222)	5/31/1999 4:03:00 PM
From: Cap_Loss_Cfwd	Read Replies (1) of 164684

>>AMZN is clearly building loyal customers << I have no doubt that they are to some extent but there cannot be enough of them (loyal ones) to ever justify the market cap. Since loyalty is a concept that relates primarily to relationships among people I question whether true loyalty can ever be achieved in E-commerce. Also, in retailing loyalty rarely overcomes price disadvantages. AMZN's success to date is attributable to the fact that the products they sell (books, music) were carefully selected for maximum value/shipping cost and are products purchased principally by professionals, academics and students and other intellectuals. Among this group probably 90% in the U.S. already are internet users. When the next 100 million U.S. internet users come on line will they come and check out this AMZN thing and start buying obscure books or will they go and check out the sales at WALMART.com?? I know what I think the answer will be. Slowing growth (as Bezos has consistently projected), no margins, increasing costs and investment in high-risk ventures, high leverage equal very high risk of spectacular failure.

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