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


To: Wizard who wrote (92915)2/3/2000 1:55:00 PM
From: Greater Fool  Read Replies (1) | Respond to of 164684
 
>>Accounts Payable

Doesn't stretching payables make you nervous?

I'll be very interested to see how growing revenues leads to a >100% return on capital. It seems like the whole thing pivots on customer retention because of the brand name and the quality of the shopping experience. I'm skeptical that people will pay a premium because of that, but then again I was proven wrong about people's willingness to invest their money in the company, so what do I know?

And I'm curious whether a >100% return on capital will justify the current, never mind the future, valuation.



To: Wizard who wrote (92915)2/3/2000 2:25:00 PM
From: Peter Bernhardt  Read Replies (1) | Respond to of 164684
 
The real point is that Amazon grew non-book revenues 200% sequentially while books grew a respectable 34% sequential. The model works and we are headed for eventual 100%+ return on capital.

Not so. Don't mistake growth during Amazon's biggest quarter as a trend. Next quarter both those numbers plummet.

- Peter B