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

To: Sanzen who wrote (5993)	6/14/1998 4:16:00 PM
From: Sanzen	Read Replies (1) \| Respond to of 164684

I have a short position in AMZN, but I am starting to think I made a mistake. 1) While we shorts think AMZN is overvalued, but the fact is the market is giving it higher and higher valuation. Even assume the market is wrong (some would say market is never wrong), we need to have an idea when it would correct. I suspect that as long as AMZN cranks out impressive sales growth, the stock may keep going up, not forever but long enough to make shorting devastating. 2) It seems AMZN can continue to grow sales by quickly taking market share from other book sellers. I buy quite a number of books a year. I had always patronized a local book store. Now I increasingly find myself browsing around in the store and ordering on internet, unless it's a book I must have that moment. Even worse, I tend to use AMZN, because they have better prices. I found that while both AMZN and B&N give discounts on popular books, AMZN often discounts far less popular books too. Perhaps we shorts should urge AMZN competitors discount aggressively too to keep defend their turf from AMZN. Any comments? Thanks.

To: Sanzen who wrote (5993)	6/14/1998 4:36:00 PM
From: Glenn D. Rudolph	Respond to of 164684

It is certainly true that AMZN, like traditional book sellers, inccurs the cost of advertising, administration, etc., as you enumerated. But I am wondering if AMZN could achieve greater efficency in these areas. For example, they probably only need a couple large warehouses. As they grow the sales, the efficency should improve because of the scale. Sanzen, It sure is not appearing to be more efficient. I fact, it is appearing to be less. Look at gross margins. Then look at net margins. Glenn