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

To: Tom D who wrote (1523)	2/11/1998 11:35:00 AM
From: Don Westermeyer	Read Replies (3) \| Respond to of 164684

Tom, Do you think revenues will double without advertising? And if they quit, others will be advertising taking market share away from them. My point is no low-margin retailer cannot ever afford to quit advertising, and without it, AMZN's profits aren't all that great, that's all. If others actually want this market, expect plenty of advertising from them and a possible price war. Do you think others will just play dead (especially BKS and BGRP)? AMZN has only 25% more to go before it is valued more than BKS!

To: Tom D who wrote (1523)	2/11/1998 11:47:00 AM
From: Oeconomicus	Respond to of 164684

Tom, the objective of $1bn in sales in 2000 and reaching breakeven in late 1999 both depend on doubling revenues each year for the next few years. However, they can't do that without spending big bucks on advertising through the whole period. And their larger competitors have much deeper pockets to break through that supposed advertising cost entry barrier, plus they already have strong brand name recognition among book buyers. BTW, considering John Doerr's big stake in AMZN, would you expect him to say anything other than that AMZN has won the battle? Consider this quote from a few days ago: ''It's interesting to see that the most successful firms online were, for the most part, born online,'' John Doerr Would you expect him to follow that with "but the brick & mortar firms have seen the light and will bring their full financial resources and strong brand names to bear and eventually win the war"? Bob