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Technology Stocks : Amazon.com, Inc. (AMZN)
AMZN 217.15-2.5%3:59 PM EST
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To: - who wrote (60805)6/6/1999 9:57:00 AM
From: Glenn D. Rudolph  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

Steve,

I am starting to sound like a broken record. As long as fulfillment costs exceed gross margins, profits will never exist. That is a fact. One can make arguments as to how fulfillment costs will drop or gross margins will go up but the above statement applies forever.

Glenn
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