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

To: Larry S. who wrote (137754)	1/24/2002 11:45:37 AM
From: Alomex	Read Replies (3) \| Respond to of 164684

AMZN is proving that its model works. What Amazon has proved thus far is that if you invest billions of dollars in a web site and warehouses you can make 5 million dollars in profits one out of every four quarters of the year. and it will not only be a survivor, but a leader in e-commerce. I agree. Now we need to put a number on this. In some sectors the leader has sales for a few billion dollars, in others they have sales for tens of billions of dollars. In some sectors profit margins are 40-50% (see microsoft) in others profit margins are razor sharp (see retailers). So far evrything points towards a very low margin model for Amazon. One often overlooked aspect to the model is their partnering, where they handle the sales and computer network, and their partners carry the inventory responsibility. Whatever. If you notice when it comes to AMZN is never the core model (seller of books) that is going to be wildly profitable. It is always something else: auctions, advertisement, z-shops, lawn furniture and now the latest red herring "partnering". Forgive me if I'm not so easily fooled. . In 2-5 years, people will look back on AMZN in the teens or low 20's as an incredible buying opportuniy. Last time I heard somebody say that Amazon was at $100 per share....