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

To: Glenn D. Rudolph who wrote (106199)	7/16/2000 10:35:13 AM
From: Killswitch	Read Replies (4) \| Respond to of 164684

Amazon has not paid for the wharehouses. In fact, Amazon does not own them. Amazon leased these wharehouses and at a very high rate due to the fact they were built by the developer to suit Amazon's needs. Thus, Amazon will have continual lease payments which in effect is debt. These debt payments are fixed and there are still the variable costs of labor, utilities, etc. Ok you got me, I hadn't looked it up. You're right, they are apparently paid for via a mix of leasing and financing. But I looked in the latest 10Q, and all I can see in the cash flow statement is that they spent about $8m over the quarter on these facilities. Not exactly a huge amount of cash burn rate. Mainly I just wanted to point out that the other poster (who apparently also assumed they had bought the facilities) was making some incorrect analysis based on his beliefs. I suppose one is to assume you know this as a fact. Please do not make statements you have not researched nor can back up. I anticipate Amazon will be out of cash again Q3 2001 but I am not going to make a statement to the effect that is fact. Of course I cannot say for 100% sure :-) We both have our opinions. Mine happen to be backed up by the company (who states they will be cash flow positive by end of this year), and also major analysts who have spent more time on this than myself. For your opinion on the other hand, I don't see much backing it up.