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

To: Glenn D. Rudolph who wrote (112248)	11/30/2000 1:38:37 AM
From: Alomex	Read Replies (1) \| Respond to of 164684

I am quite sure Alomex is way too low on the loss amount. Just look at the cold hard figures: Using your estimate of actual losses, Amazon lost 21 cents on every dollar sold on Q3. Because of fixed costs such as lease of warehouses, all other things being equal Amazon would post improved margins on bigger revenues, about minus 15-17 cents on the dollar or so. But we must we add back in catalogue cost, plus free shipping and other gimmicks. This takes margins back to minus 21 cents, for safe measure lets say they go all the way past to minus 25 cents. Total loss?? $200-$250 million.