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To: Sig who wrote (152549)	1/28/2000 1:05:00 PM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

~OT~ Sig: I wonder if Janus has been selling some of their Amazon shares since they became the largest shareholder during last fall's sell-off. I can't believe they are in love with AMZN's fundamental's..!! Amazon sure hasn't proven that their business model allows them to make money <G> -- and now they are starting to pay the price for that. AMZN's shares have lost almost half their value since their peak in December. Here is an interesting update... <<Amazon cuts 150 jobs By Bloomberg News Special to CNET News.com January 28, 2000, 9:35 a.m. PT SEATTLE--Amazon.com, which has racked up losses totaling more than $550 million, said it fired about 150 employees, or 2 percent of its workforce. The retailer declined to say why it made the job cuts or whether there will be charges. The firings are spread across divisions and are mainly in Seattle, where the company is based. The stock fell $6.38, or 9.5 percent, to $60.56 in midday trading. Amazon shares have lost almost half their value since reaching a high of $113 in December, erasing about $17 billion in market value. The stock has dropped on concern about chief executive Jeff Bezos' plans to continue spending more to market the Web site and add new products, which would exacerbate losses. The biggest online retailer Quote Snapshot AMZN 60.44 -6.50 has been quickly adding staff with its expansion. It had 7,500 workers before the cuts. That compares with 2,100 as of Dec. 31, 1998, and 614 the year before that, according to regulatory filings. "I would almost classify it as growing pains for them," said Peter Schwab, managing director at Ernst & Young. "They probably just overhired in various places and now realize they don't need those people." The company, which began selling books in 1995, has yet to make money and is expected to report a loss in the fourth quarter. Bezos has said he doesn't expect Amazon to turn a profit any time soon. Amazon is expected to have a loss of 48 cents a share for the quarter, before acquisition-related costs such as goodwill, according to analysts polled by First Call/Thomson Financial. Estimates range from a loss of 43 cents to 55 cents. The company spends heavily on promoting its site. Marketing and sales expenses were $233.2 million in the nine months ended Sept. 30, equal to almost 25 percent of total revenue. Those expenses include the costs of filling orders. The job cuts aren't related to temporary workers hired for the holiday season, said spokesman Bill Curry. "As we grow, we're going to continue to always review the organization and make sure we have the skills in line with our mission," he said. Copyright 2000, Bloomberg L.P. All Rights Reserved.>>

To: Sig who wrote (152549)	1/28/2000 2:02:00 PM
From: stockman_scott	Read Replies (1) \| Respond to of 176387

~OT~ On the AMZN thread I discovered a post from one of the more optimistic Amazon investors <G>.... << I think Wal-Mart might also buy what's left of Amzn. Now, would that be before or after Amzn's chapter 7 petition? I can't answer. HJ, I am not sure what part of AMZN Walmart will want. Walmart could use a decent distribution center for their online sales but Amazon chose to place their centers not close to airport hubs. I believe that was an error on the part of Amazon although the analysts did not. Of course Jammie Keegan and Henry Blodgett just put out a strong buy on Amazon a week ago today. I am certain these retailing analysts are retailing geniouses and know far better than I. ETYS has the same problem as AMZN just on a small scale.>> -------------------------------------------------------------- The Amazon Saga.....All I know is that the venture investors (like Kleiner Perkins), the I-Bankers (like Morgan Stanley) and the early employees have made out like bandits. Many of them have cashed in and now are not as incentivized to see the company to succeed. The business model is flawed (IMO) and the marketplace is becoming MORE demanding. I think we'll see some case studies and books written about 'the Amazon Fiasco' <G>....Who knows, maybe some of the business schools and Wal-Mart will end up selling them..!! Stay tuned and we'll see if I'm right. At least DELL and a few of the internuts have proven that they know how to make money (or they have demonstrated a CLEAR path to profitability). Enjoy the weekend. Regards, Scott