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

To: greenspirit who wrote (3600)	4/28/1998 7:17:00 PM
From: Tom D	Read Replies (2) \| Respond to of 164684

<<no matter how many brilliant short posts there are on this thread, the market can humble the best of us>> JMHO, but too many of the short posts are a far cry from brilliant. Clearly the market value of this stock derives from expectations about the future potential of the company. Obviously it has nothing to do with the past. So why are there so many postings about fundamental analysis involving last years numbers, especially comparing AMZN's past to BKS and Borders past? AMZN is growing much faster than those companies so it commands a much higher price-to-sales ratio. AMZN's costs will level out around $500M or $700M or $1B, depending on the number of retailing sectors in which it will choose to compete. When revenues exceed these relatively fixed costs, profitability will follow. These fixed costs are the barrier to entry for competitors--the competitors can't grow revenues fast and far enough to survive. AMZN is one of the few who can. These are basic ideas. So, why all the uninspired posts reminding us that AMZN is losing money? Best Regards, Tom D