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

To: Bilow who wrote (2572)	3/31/1998 10:07:00 AM
From: Oeconomicus	Respond to of 164684

Hi Carl. I think your friend should set up Web site to allow customers to schedule appointments online and to consult with stylists prior to coming to the shop. They could even scan in a photo and try out different hair colors and cuts, and when they find one they like, print it out with step by step instructions to "do-it-yourself" so they never have to leave their homes again (and if they mess it up, no one will see it because they telecommute to work, and buy their groceries and enjoy all their entertainment online too).<g> Seriously now, your points about seasonality and margins are right on. The seasonality is why I said, back in December, that 50% Q-to-Q growth should be a major disappointment and that something much higher should be expected. The first quarter, OTOH, is likely to be pretty flat. The gross margin comparison you gave is very telling though. BKS' margins, compared to the same quarter in the prior year, have been steadily improving while Amazon's have been steadily deteriorating. This is contrary to what should be expected as a business grows and gains efficiencies and purchasing clout. Surely margins should be better on $66 million last Q than the $8.5 million in Q4 '96, right? That's what bigger, stronger competitors can do and it will only get worse. Regards, Bob