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

To: Randy Ellingson who wrote (111814)	11/13/2000 1:09:55 AM
From: Glenn D. Rudolph	Respond to of 164684

Come on, Glenn. A sign of panic? You're assuming the market is pretty dense here, since there's been no sign of panic selling the past week or so, outside any ordinary ability to fluctuate. Randy, For various periods of time, it quite clear the market is very dense. We could revisit a multitudes of rediculousness such as PCLN, ETYS, KTEL (when they went on-line), etc. This I do not understand. When they have gross margins of 26%, what makes you think they're giving away the store? BTW, can you compare and contrast and other "diversified" etailer wrt to gross margins and especially net margins, and show that Amazon is doing poorly in a particular aspect of their business? Let's not be naive and buy the numbers presented. Amazon has negative gross margins. Amazon does not include fulfillment and shipping in the cost of good sold. However, Amazon does include shipping fees they receive as revenue. This accounting is not GAAP in any way nor do most if any succesful retailers figure gross margins without fulfillment. Fulfillent should be in the cost of goods sold. This includes the expense of the distribution centers. You asked me to compare other diversified retailers regarding margins. Sears has gross margins of 14% which of course includes fulfillment in the costs of goods sold and a net margin of 2%. Wal-mart has a gross marging again using GAAP, of 11% with a net marging of 1.8%. Amazon has negative gross margins so net margins cannot be positive. The debt is irrelevant now unless you are counting the 10 year leases for the distribution centers as debt. Glenn