Amazon.com, Inc. (AMZN) Message Board

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

AMZN 218.36

-1.9%

1:55 PM EST

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To: - who wrote (60805)	6/6/1999 1:26:00 AM
From: Mark Fowler	Read Replies (1) of 164684

A lot of people are looking at it wrong - they envision every product Amazon is selling as being sold below cost (thus the loss); not what's going on. The loss is coming from their massive investment in infrastructure, capability, brand-name development, alliances, etc. --the things that will make them a success over time. Once those investments have been given time to bear fruit, to pay back, AMZN's #'s will look a lot different... there is a lot of leverage built into their model & infrastructure, which I don't think is easily duplicated.<< Walmart's push to the internet even validates Amzn's model...no doubt the stronger Amzn's market leadership, the more powerful their economic model becomes. They have consistently reflected this focus. Measure them in terms of metrics, customers and revenue growth, brand awareness and degree of repeat customers and then compare them with others. Of course there strategy is not without risks: it requires serious investment and excellent execution against established leaders. So far i like what i have seen and at these prices i think it's a great value.

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