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

To: Oeconomicus who wrote (3610)	4/29/1998 12:07:00 AM
From: Tom D	Respond to of 164684

Bob, thanks for your response. <<<Amazon is the one at a disadvantage because they still can't cover their fixed costs, much less variable.>>> Maybe "fixed costs" was not the correct term. What I should have said is their advertising and promotional costs. Anybody who wants to compete with AMZN must be prepared to sink $500 M or so into expenses for the next several years. WalMart and Bertlesmann could destroy AMZN if they are nimble and committed to doing so. For me, these two companies are the biggest negative for the stock, since the market cap is so heavily based on future expectations. OTOH, there is tremendous potential upside in additional possible deals. I would guess that three announced acquisitions are the first of many deals. If BKS is sincere about "not sacrificing profitability to the web" then they pose no threat to AMZN. Considering their price discounts, it looks like BKS is sacrificing profitability as we speak. BKS is going to cannibalize their land-based stores--I can't wait to see their Q198 earnings report. P.S. As you can tell, I never did take Econ 101. Best Regards, Tom D