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

To: manalagi who wrote (119374)	3/5/2001 5:28:57 PM
From: Glenn D. Rudolph	Respond to of 164684

<i.Amazon did not hit 13 1/2, so I am still short on Amazon. I believe most of the short covering has been made today, and tomorrow Amazon will resume its slide. This is good. I agree the slide will continue. I knw it sounds like a conspiracy but I truly believe Amazon leaked this story or som institutions did to unload stock and that they did. As for the rumors, I know that money can generate strange bedfellows. But your analysis hits the nail on the head: why would Walmart do an alliance with Amazon? Would Walmart let its customers come to the store, use a computer terminal to access Amazon and do a comparative shopping? Let just think about it. Take for instance the case where both Walmart and Amazon have the same price. Walmart charges sales tax, Amazon gives free shipping, and delivers the goods at your doorstep. Good thing for Walmart? This is the crux of the issue but there are even smaller but very important issues that would also argue against any agreement here. Wal-Mart has a contract with Accel Partners, one of Silicon Valley's most highly respected venture-capital firms. I doubt the memebers of Accel would take real kindly to have their remaining money returned so Wal-Mart can make a deal with Amazon which is backed by Kleiner Perkins. Thie partnershil with Accel partners is only one year old. Certainly not old enough to decide how well it is working. In addition, in percentage terms, Walmart.com has a higher growth rate than Amazon.com. I am quite sure Wal-Mart partnered with Accel for their connections ot high tech employee talent pool. I doubt it was for a cash infusion so I expect Walmart.com to continue on this path which should do well for them and for Accel. Time will tell here but I feel quite comfortable that this rumor has no basis at all. Also, Jim Morris did point out for example that IBM does work for a lot of competing firms. That is all behind the scenes. Toys R Us is a brand name pertnered with Amazon and they definitly donot want their name connected with Wal-Mart who has been killing them in the toy business. Finally, I see some FTC problems that could become major if there was really a deal here.