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


To: Oeconomicus who wrote (5075)6/6/1998 7:00:00 PM
From: Mark Fowler  Read Replies (2) | Respond to of 164684
 
Sir, that wasn't the original question.

In my view what that analyst believes the sector was just getting warmed up from the last move. Maybe he knows something we don't, and i wish i new.

I think what the analysts are saying is that Amazon's margins are thin as a result of massive investments in marketing and promotion, and "now" believes that Amazon's sales are rising enough that Amazon can boost margins through bigger volume discounts from publishers. And, also at some point, sooner than originally estimated, Amazon will be able to cut back on marketing and promotion expenses and stabilize them, thus rocketing profits upward. And of course the lead over the competition matters to me and every sane CEO of a corporation and will continue to grow if they execute well. And how that has improved at this point? I don't know if it has; A little early to know that. Hopefully, sales will improve with less marketing and promotional expenses needed in here soon. However, i'd much rather see them at this point continue to buildout their operation through heavy investment. Regards