Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Alomex who wrote (111352)	10/27/2000 1:28:36 PM
From: Olu Emuleomo	Read Replies (1) \| Respond to of 164684

>>>Margins will never be huge beacuse (1) they are simply a retailer and (2) their enormous debt... "The Economist" magazine thinks Amazon could better be classified as a software company. They have over 100 programmers working on their web site, constantly turning out new innovations. --Olu E.

To: Alomex who wrote (111352)	10/28/2000 12:11:27 AM
From: Glenn D. Rudolph	Respond to of 164684

They will go to the market for refinancing on Q2, but the money will actually be used to pull them through Q3 and Q4. Minute profitability will be achieved in Q1 2002. I do not see any model nor can I create one that would show profitability in 2002. Debt is too high and fulfillment will continue to eat almost all of gross margins. The interest payments will eat the balance. For Amazon to continue to grow revenues, they need to open more sites in more countries. This requires more distribution centers which in turn, requires more cash. Amazon I believe will continue to be a cash burning machine until the equity markets will give them no more. Bezos gave guidance at the end of Q4 1999 that capex would handle cash needs in fiscal 200. It is turing out he was only off by about $900 million. I would think someone would question him on that alone. Except for Suria, no one has. Maybe Bezos might take some time to post on SI and explain why capex was only shy $900 million in the year 2000. This would give me confidence if he could explain what went wrong and how this will be corrected for the year 2001. My opinion is his howash comment about Suria was very childish and it is almost comical that someone that is the CEO of such a large firm would behave in such a fashion. Glenn Glenn