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

To: Tom D who wrote (2903)	4/8/1998 8:51:00 PM
From: Glenn D. Rudolph	Respond to of 164684

I thank you for the recap. Excellent post. Why do you think there would not be a pretty consistent correlation between web site visits and sales revenues? I believe there is a lot more comparison shopping now. There are more online book stores that are just a click away. Therefore, there will be a lot of hits without a purchase compared to prior times. That is my opinion. Also of interest, when the February data was posted, the stock went up 6 3/4 points. Of course this was the exact same day that Clinton made his speech about limiting state taxes on internet commerce, so maybe that increase had nothing to do with the RK data. Likewise, the increase in AMZN's price tomorrow may be in sympathy with Yahoo, and have nothing to do with RK's data today. I attribute the 6 3/4 point rise to the Clinton speech. That same day AOL had a huge run along with every "internet company" trade on public markets I am actually anticipating an up opening tomorrow due to YHOO but a sell off as the day progresses. That has been the history of YHOO after earnings and AMZN seems to follow and vice versa. They are not the same type of firms. YHOO is a content provider and sells advertising. AMZN is a retailer that needs to pay for advertising. The more competition in the field the smaller the gross margins and the higher advertising costs. I do not see the market making this differentiation as of yet. I cannot argue with that. Who ever said the market was efficient?<G> I read the recent 10K closely and it appears to me that AMZN will never become profitable. They used too much cash to make a presence and now the competition is moving in. The competition has deep pockets, better name recognition and less debt burden. However, it appears the market ignores that too. I suppose patience is necessary since I am short shares. I have to admit I have some concern but feel quite confident that AMZN will be left behind YHOO, AOL and others. I do not know when. Glenn