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

To: Ken Pomaranski who wrote (1862)	3/2/1998 11:18:00 PM
From: Michail Itkis	Respond to of 164684

Responding to some of your points: 1. Profits do not always follow revenues - just look at the huge number of startup airlines that fail, they all generate revenues but they also loose money. And in a competitive environment they are unable to raise their fares to a level of profitability - even after they gain market-share. 2. Amazon's efforts that are directed at small publishers are unlikely to generate much profit - 40% of all US book sales are paperback romance novels another huge piece is eaten up by Grisham, King et all. Being the leading seller of an obscure poet will not generate millions of dollars of bottom line profit. I would love to see an analysis comparing the marginal cost and the marginal profit of the least selling million of AMZN's 2.5 million books. 3. Sometimes the crowd is right being a contrarian is not a guarantee of profitability.