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Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: dbblg who wrote (70221)	7/28/1999 1:06:00 AM
From: Eric Wells	Respond to of 164684

>>Drugstore.com (DSCM: news, msgs) is being offered >>at $18 per share, above its upped $15 to $17 per >>share range for 5 million shares. Its original range >>was $9 to $11. (from Marketwatch.com) Anyone have any predictions on how high DSCM will go tomorrow? If MPPP can go over 100 first day of trading, I would think DSCM will as well. Of course the real question is: at what price will it close? cbs.marketwatch.com >>Judging from the success of other IPOs that have priced >>above their range, Drugstore.com should see an >>ethereal reception on Wall Street. Ethereal? -Eric

To: dbblg who wrote (70221)	7/28/1999 1:15:00 AM
From: Tradegod	Respond to of 164684

Excellent post Ganesh: Bezos has impressed me with his visionary outlook and tireless devotion to his vision. From that, it's very logical and understandable for them to downplay profitability in the foreseeable future. Why? because the increased competition and the desire to attract customers will devour any hopes of profits. His strategy is clearly to outlast the competition and hope that when they go away prices can rise to make it economically feasable. This will require lots of cash and staying power. Whether the markets will grant him this is uncertain.

To: dbblg who wrote (70221)	7/28/1999 1:59:00 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 164684

Interesting, I hear exactly what you are saying and have the opposite take on each... Electronics vendors are a lot less obliging about assuming the inventory risk, which is, of course, vastly greater given how quickly products lose value. Not a longer term problem if AMZN executes, but it makes the ramp-up a lot riskier. I know you say only ramp-up is the problem... I guess I think with Amzn's customer catalog from day one the electronics biz has the economies of scale to win with efficient warehousing, thanks to the e-tail centralized distr model. Additionally, I suspect more orders will be for single items, which makes price comparison easier. I think the merchandising issues make price comparison on these items harder than books. I agree with you customers will be more interested in doing it, but unless they can find the exact or comparable items its pretty futile... books are different, a true commodity, everybody sells the same stuff. (I also think nobody is selling a decent portfolio of electronics or toys online so there isn't anybody to compare with).