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

To: Victor Lazlo who wrote (89905)	1/5/2000 11:03:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Glenn you may recall a recent post I made to you re amzn's invetory costs, (how car dealers lease their inventories, so how does amzn finance theirs? ) I have been starting to wonder about this since they began building their big warehouses. I figured all that inventory would add even more drag on their financials but I did not think it would be this bad. Victor, I believe I responded to your post regarding inventory costs and explained that in the current categories Amazon sells that leasing was not an option. The auto dealer business is entirely different and a lot of the inventory is subsidized by the manufacturer. Of course, the longer it takes the dealer to move the car, the more the cost to carry the inventory which is how it is a lease. The auto manufacturer also eats a lot of the markdoown cost for either slow moving models or end of the year models by providing sale incentives at no cost to the dealer. Just to be clear, I am in no way saying selling automobiles is easy. William disagrees with me on this but I believe Amazon will need cash by late this summer. William believes the cash burn will slow and Amazon will not need any more capital. In any case, if i am correct, I wonder if the street will be as generous this time around.