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

To: Oeconomicus who wrote (124065)	4/24/2001 5:17:35 PM
From: Skeeter Bug	Read Replies (2) \| Respond to of 164684

rd, what about interest payments? amzn has to pay, pay, pay... imho, this business is toast. the only issue for bezos is how to monetize his ownership in a failing business. >>Problem is, assuming operating expenses can be held flat again (in absolute dollars), it would take $1.08 billion of sales at a 26% gross margin to break even (EBITDA).<< never happen. even if sam walton ran the place himself.

To: Oeconomicus who wrote (124065)	4/24/2001 7:17:52 PM
From: Glenn D. Rudolph	Respond to of 164684

Glenn, it's been a while since I've followed this thread. I commend you for sticking it out. Right on target... meaning? Sticking around has become a hobby. My target was working capital. The firm cannot survive through Q1 2002 without raising cash. Maybe not quite that long depending on vendor confidence in them. <i.it would take $1.08 billion of sales at a 26% gross margin to break even (EBITDA). One cannot ignore the "I" in EBITDA for Amazon. It is too big. Perhaps, like many retailers, they'll make enough each Q4 to more than make up for losses in other quarters. Thoughts? I think not. They need dual channel. The DCs (fulfillment) is way too expensive.