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

To: Alomex who wrote (113227)	12/24/2000 8:58:30 AM
From: Glenn D. Rudolph	Respond to of 164684

This is a difficult call to make as we have very little guidance on the price per item (specially with the Toys R Us deal). My guess that they won't reach $1 billion in sales, unless they include the full price of each toy sold... I can't say much about revenue. I can say that losses are going to be far higher than projected. The road to profitability was washed out with a huge rain storm on stop of a large snow fall. Online sales growth is slowing. The brick and click stores are gaining traction to use this as I customer convenience concept. The real winner in the on-line selling business was Yahoo. The after Christmas concept of selling excess inventory by Amazon is again proof of the problem of retailing on-line having no advantage of off-line. The disadvantage is clearly obvious due to fulfillment not being done by the consumer for free. My calculations indicate that Amazon spent more than 50% of their gross margins in marketing expenses alone and that is using their in inaccurate gross margin percentage which excludes fulfillment. I seem Amazon issued a press release when they took their last order for this season. They quoted a few customers regarding how satisfied these customers were with Amazon's inventory, pricing and delivery. They did ignore or did not quote any dissatisfied customers. Apparently, there were none;-) Amazon has not changed from the concept of issuing press releases that have some correlation to the business itself. A press release about how revenue was would have been nice. Maybe margins and net margins or the effect or lack thereof of the catalogue campaign. May some information ragarding Europe or Japan. The press release was clearly an endorsement by Amazon about what a fine store they are. I believe we should call it what it was. It was an advertisement If I was an investor, I would be far more interested in a press release that deals with the possibility of ever being profitable.

To: Alomex who wrote (113227)	12/26/2000 4:58:22 PM
From: tom rusnak	Read Replies (1) \| Respond to of 164684

RE: Toys R'US, The profits that Amazon may show from its partnership with Toys "R" Us are particularly intriguing. The way the deal was structured, Toys "R" Us records product sales while Amazon takes in shipping revenue. According to a study by Mr. Rowen in November, covering several online toy retailers, Amazon had the lowest prices on products but the highest on shipping. From the Sunday NY Times: "Behind That Good News at Amazon" nytimes.com regards, tom