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

To: Edward Burgener who wrote (2521)	3/29/1998 2:32:00 PM
From: Gary Korn	Respond to of 164684

Compare quarterly revenue growth for AMZN and BKS. Notice that: 1. For Barnes & Noble, 4Q sees a Christmas spike each year. How much of such a spike was included in the AMZN 4Q97? 2. AMZN revenue growth doubled every quarter in 1996. In 1997, that growth moderated, but spiked with the Christmas quarter. Will revenue growth moderate still more in 1998? 3. AMZN can only get so large revenue-wise. BKS, which sells through stores, on the net, etc., has quarterly revenues of about $600MM. AMZN, which sells through one source (the internet) has sales that are approaching $100MM/quarter. There is a limit somewhere, and it will impede the rate of revenue growth. Not to mention that other companies are coming into the same market (Random House is the latest). 4. Not everyone wants to buy books on the net. Many people (myself included) enjoy flipping through real books on the displays, and enjoying the experience of just being in a bookstore. BKS (Barnes and Noble): 1994 1995 1996 1997 1Q 320MM 402MM 509MM 596MM 2Q 351MM 420MM 524MM 618MM 3Q 359MM 432MM 533MM 615MM 4Q 593MM 723MM 882MM 969MM AMZN: 1996 1997 1Q .8MM 16MM 2Q 2.2MM 28MM 3Q 4.1MM 38MM 4Q 8.5MM 66MM Gary Korn

To: Edward Burgener who wrote (2521)	3/29/1998 2:48:00 PM
From: Gary Korn	Read Replies (1) \| Respond to of 164684

Interestingly, BKS (Barnes and Noble) has been the exlusive bookseller through AOL since March 1997. Doesn't seem to have had an impact on AMZN revenues (though perhaps it slowed the rate of increase): "BarnesandNoble.com was launched in 1997 as an online subsidiary of Barnes & Noble, Inc. The company's mission is to become the premier bookseller online. The company has been the exclusive book provider to America Online's Marketplace section since March 1997. Additionally, BarnesandNoble.com has developed an e-commerce Web site, which was launched in May 1997. BarnesandNoble.com offers every title in print and delivers deep discounts on all its titles in stock: 30 percent off all hardcovers and 20 percent off all paperbacks. By the fall of 1997, the company will offer next business-day delivery on over 400,000 titles. Barnes & Noble, Inc. is the world's largest bookseller. It is the leading operator of book superstores in America, with 454 stores nationwide, in 48 states. It also operates 559 bookstores in shopping malls. The company also publishes books under its own imprint for exclusive sale through its retail stores and nationwide mail order catalogs. General financial information on Barnes & Noble, Inc. can be obtained via the Internet by visiting the company's investor relations Web site: shareholder.com; Gary Korn

To: Edward Burgener who wrote (2521)	3/29/1998 2:53:00 PM
From: Gary Korn	Read Replies (1) \| Respond to of 164684

FROM THE BORDERS WEBSITE: borders.com Coming soon to a computer near you! A new Borders.com where you'll be able to search for the titles you want and buy them from the comfort of your own keyboard. Would you like us to drop you a line when this site launches? If so, please type in your email address below: Email: If you bookmark this page now, you'll only be a click away when our new site is online! Gary Korn