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Technology Stocks : eToys Inc. (ETYS) -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (784)	11/6/1999 12:31:00 PM
From: Harley Davidson	Read Replies (1) \| Respond to of 1330

I think AMZN gained the benefit of being one of the first high profile E-commerce companies but this was largely due to the stock price. One thing fed the other. The higher the stock price went the more interest and name recognition they got and the more business they got. Even with the tremendous amount of ink they got they are still loosing 1.38 a share and are carrying a 22 billion dollar market cap. 300 million in sales last quarter and 120 million in losses. I wonder what an ad campaign would have cost them to yeild the kind of name recognition they now have from all that free ink. The BNBN IPO went no where and when it went down BKS went down with it. If Amazon's sales were stronger BNBN would have done much better. BKS's price is supported by earnings and the market realized that the earnings were not going to materially be effected by selling books on the net... ie Amazon. So BNBN flutters and BKS drops. I was going to buy a CD from CDnow last week. It was about 13 bucks plus 4 bucks S&H. I got it at Sams for 11 dollars. 17 vs. 11. Immediate gratificatoion vs. waiting a week. I think there are some advantages that the E-commerce companies have but I think they have some large challanges. I just don't think that the strictly E-commerce companies will have any edge on the brick and mortar businesses that also have functioning distribution networks and web sites. The competitive demensions will still be product, price and service. The invisability of the Internet will be something that the strictly E-commerce companies will have to constatly overcome. I pass a Toys-R-Us at least once a week. And the economnies of scale will go to the players with the biggest top line which will likely be they companies with the most avenues of distribution. I think that the first player in the game has the advantage for a while but E-commerce is definately over valued in the market place and the playing field will flatten out. Sure wish I would have held on to ny AMZN shares at a split adjusted price of 18 though. BuddyR (WSS)