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


To: Srexley who wrote (107382)8/22/2000 5:48:15 PM
From: microhoogle!  Read Replies (3) | Respond to of 164684
 
I feel that someone will win in the market(s) that Amazon is in. They seem to be in the best position because of the infrastructure they have built. At some point merchandise will have to be sold on the internet at levels that support profit. The other option would be for no company to survive, and I can't see that happening.


This is how I see it. Someone correct me if I am wrong. For amazon to be profitable, it will have to sell goods for a profit. Which means, it will have to raise prices and/or reduce promotions (after it squats all competitors out of stage). Once amazon does that, a new competition will emerge and force Bezos to go back to old ways i.e sell goods at discounted price, which means losses. No matter how you look at it, such companies (strictly online retail) will not support high share price (even when it is profitable).



To: Srexley who wrote (107382)8/22/2000 5:57:37 PM
From: Skeeter Bug  Read Replies (2) | Respond to of 164684
 
srex, somebody will win with profit margins near 1%, if that. if amzn sold $100 billion a year then they might be fairly valued at about their current stock price.

i don't think amzn will be selling that much anytime soon.

this business sucks big time. an educated consumer is profits #1 nightmare. consumers are getting smarter every day.