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

To: Oeconomicus who wrote (4264)	5/12/1998 11:27:00 PM
From: Walter High	Read Replies (2) \| Respond to of 164684

Well, Bob, maybe I'm bitter because I got a severe haircut on my AOL short last year. I felt the same way about AOL that most of you do about AMZN. Granted, AOL does have something to differentiate them from competitors (content), but their service absolutely sucked wind. I thought that as people became the least bit sophisticated about using the internet, they would move to a cheaper provider who would treat them with some dignity. Didn't happen. I don't know whether it is because people loved the content so much that they wouldn't give it up or because of the inertia that must be overcome to make a change. AMZN may be counting on the fact that once people order from them and set a bookmark, they just won't find out about the other sites. Getting books from AMZN is good enough and why look for something else. Never underestimate the power of inertia among people who have other uses for their time. I am a perfect example in regard to the telephone company. I don't ever feel like taking the time to figure out which long distance calling plan might be cheapest, and I don't make very many calls. It's not worth my time and effort to even think about it, so I stay with what brung me. People may do that with Amazon. If they find AMZN and buy an occasional book, they may never try to change even though they could save money. People have to take positive action to change, and I bet Amazon is counting on getting there first and hoping people won't change. Few people are as driven as you guys. Walter High

To: Oeconomicus who wrote (4264)	5/13/1998 7:14:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Selection? Not. Service, i.e. prompt delivery of more titles? I think having inventory gives the others the edge here too. It is a proven fact that in traditional retailing inventory makes all the difference in the world. People are not patient. They want the product as soon as they decide to make a purchase. They do not want to hear "we can get it". I am going speculate that the early adopters of the net are even more compelled to not want to wait. They are use to email not snail mail, etc. People are entitled to their purchase as quickly as possible. I know I am that way. A two day delivery lead makes a big difference. One of the reason for the large success of PC/Mac Connection is/was in stock product with delivery the next day. Glenn

To: Oeconomicus who wrote (4264)	5/13/1998 7:43:00 AM
From: Glenn D. Rudolph	Respond to of 164684

It appears the old brick and mortar stores will survive a bit longer before AMZN takes away all their business<G> Wal-Mart Earnings Increase 27% As Higher-Priced Goods Sell Well By LOUISE LEE Staff Reporter of THE WALL STREET JOURNAL Wal-Mart Stores Inc.'s fiscal first-quarter earnings jumped 27%, driven by strong sales and customers' willingness to buy higher-ticket items. For the quarter ended April 30, net income rose to $828 million, or 37 cents a diluted share, from $652 million, or 29 cents a diluted share, a year earlier. The results easily beat analysts' expectations that the company would post earnings of 34 cents a share. Sales rose 17% to $29.82 billion from $25.41 billion a year earlier, while sales at stores open at least a year rose 9%. In New York Stock Exchange composite trading Tuesday, Wal-Mart shares rose $1.625, or 3.2%, to $52.75. Analysts said the company benefited from both increased customer traffic and a boost in the average ticket. "It's becoming glaringly obvious that with a 9% same-store gain, Wal-Mart has gained market share from its two major competitors," Kmart Corp. and Dayton Hudson Corp.'s Target chain, said Michael Exstein, an analyst with Credit Suisse First Boston Corp. Strong sales have continued into this quarter. John B. Menzer, the discounter's chief financial officer, said the company is comfortable with First Call analysts' current earnings projection of 40 cents to 41 cents a share for the quarter ending July 31. In the second quarter a year earlier, the company, based in Bentonville, Ark., posted earnings of 35 cents a share. Wal-Mart also is projecting an increase in same-store sales in the "mid- to-high single digits," Mr. Menzer said. Looking forward into the second half of the fiscal year, Mr. Menzer said the company is less certain where consumer spending will go and added that Wal-Mart's strong year-earlier results will create a tougher comparison. "We don't know if we can keep these increases up," he said. Mr. Menzer attributed the results in part to the overall economy. "Certainly, the consumer is spending," he said. He added that more consumers are buying Wal-Mart's higher-priced merchandise and that purchases were spread throughout the month rather than following the past pattern of clumping around paydays in the middle and at the end of the month. In the core discount division, which includes Wal-Mart Supercenter locations and traditional discount stores, same-store sales rose 9.3% from a year earlier. The division reported operating profit of $1.4 billion, an increase of 27% from $1.1 billion a year earlier. Sales rose 14% in that unit. At the Sam's warehouse-club unit, operating profit was $126 million, an increase of 10% from $115 million in the previous year. Same-store sales at Sam's rose 7.6%. The company's international division reported a profit of $82 million, compared with $6 million a year earlier. Sales nearly doubled to $2.6 billion, driven in large part by double-digit same-store gains in Canada.