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

To: dmccoach who wrote (870)	11/26/1997 2:15:00 PM
From: Bilow	Read Replies (1) \| Respond to of 164684

Yeah AMZN is in a commodity business far, far worse than the grocery business. In groceries, your competitor actually has to build a physical building near yours to compete with you. On the internet, there are no barriers to trade. Disaster for all high cost commodity resellers, and AMZN isn't even a low cost reseller. -- Carl P.S. I'm short CPQ cause I think the asian news really hasn't been discounted into the tech stocks yet. My expectation is that as computers become even more commoditized than they already are (as the sub $1000 computer becomes dominant) the competition and margins for all the players in the industry will get killed. On the other hand, one could expect that the reduction in components costs will accrue to the box makers bottom lines. But this didn't happen in TVs or pretty much all the other low end commodity electronics over the years, so I don't see why it will start happening now. My other expectation is that the market for low end computers is somewhat more inelastic than the box makers hope. That is, as prices drop, unit sales will not increase enough to keep the dollars going through the companies increasing at the rates they have so far. Who knows? -- Carl