Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Glenn D. Rudolph who wrote (5971)	6/14/1998 9:20:00 AM
From: Skeeter Bug	Respond to of 164684

nice article. mail order was never so glamorous as now ;-) >>In the end, the only really reliable way to compete in a commodity business is by cutting prices, and with a 22 percent gross margin, Amazon doesn't have much room left to do so. But even though the company is currently losing nearly 20 cents on every dollar of revenue it takes in, plans are now in place to undertake further price cuts in the year ahead, meaning reduced gross margins and bigger losses than ever. Will the business ever turn profitable? << funny, amzn's new deal with geocities is to provide 15% commission to geocities homesteaders to sell there books. ok, what is 22%-15%? 7% gross margins, boys and girls, ladies and gents. i think amzn's manipulation game is to give wall sweet revenue growth at the expense of earnings. unfortunately, i'm not sure wall sweet has the collective intelligence to figure out amazon's con. at least not anytime soon. good luck. ps - information flow is good for consumers, not companies. i can buy a ms office 97 pro cd for $39 b/c of the net's information transparency. is this good for all the retailers selling ms office 97 pro for more than $39? really nope. even if they have a cutesy web site? NOT! ;-) me thinks not. we will now go to the lowest common denominator. price. especially in commodities. i REALLY don't understand why this concept is not grasped b/c it is self evident. unfortunately, grasping the obvious is not always an easy job for the investment herd. i guess they are too busy chasing momentum stocks b/c they don't rely on their own analytical abilities. i can kind of understand why ;-) good luck.