Amazon.com, Inc. (AMZN) Message Board

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

AMZN 224.35

-3.7%

10:37 AM EST

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To: Glenn D. Rudolph who wrote (59426)	6/1/1999 9:58:00 AM
From: Wizard	Read Replies (2) of 164684

>>The important fact is gross margins. It is much more important to grow gross profit dollars than any particluar percentage. Moreover, its the efficiency of business in general as measured by return on invested capital. Look at Dell Computers model; low gross margins, low operating margins, great return on capital. Dell's revenue growth has slowed below 40% but my point is that the combination of very high revenue growth and good return on capital is very rare and leads to tremendous growth in shareholder value. Now AMZN doesn't have positive income yet so the ROIC is on the come but as Henry Blodget points out today, there is a big difference between 'losing' money and 'investing' money.

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