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


To: Oeconomicus who wrote (134323)11/7/2001 10:54:45 AM
From: tech101  Read Replies (3) | Respond to of 164684
 
The reasons that AMZN could have higher P/S ratio are

1. Amazon uses the most advanced technology so its productivity is much higher than the traditional retailers and its sales/employee is at least twice as much as its traditional retailer competitors.

2. The goods Amazon sells -- electronics etc. -- have higher price tag than most of Wal-Mart's

3. The costs of operation for Amazon can be substantially lower than Wal-Mart camp, who needs to hire a lot of people, buy land, construct/operate their stores, ...

4. Amazon is making money through partnering with Target, Circuit City, and many other, and the costs for Amazon is almost ZERO.

In addition, Jeff B. and his employees are under extreme high pressure to produce -- increase sales and reduce costs -- this is the difference of death and life.

I'd bet on the survival and success of Amazon.

Is this the Amazon board? Sometimes I forgot it is -:)