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

To: Glenn D. Rudolph who wrote (6942)	6/21/1998 5:12:00 PM
From: Tom D	Read Replies (2) \| Respond to of 164684

<<<after years of rapid expansion, Barnes & Noble is also beginning to rack up some solid profits>>> Watch what happens when they report the unexpected magnitude of their losses for Q2 '98. Q2 '98 will be the first quarter in which they spent (and lost) some real money trying to compete with AMZN. AMZN gets to lose $500M in growing their online presences. BKS can either lose money or lose market share. Best Regards, Tom

To: Glenn D. Rudolph who wrote (6942)	6/21/1998 8:37:00 PM
From: Mark Fowler	Read Replies (2) \| Respond to of 164684

Now, after years of rapid expansion, Barnes & Noble is also beginning to rack up some solid profits. After going public in 1993, the stock languished for three years because of low margins and erratic earnings. But with the pace of expansion slowing and the benefits of a new distribution center kicking in, Barnes & Noble for the first time posted four consecutive quarters of operating earnings last year. For the fiscal year ended in January, it earned $147 million on operations, up from $120 million the year before. That success sent the stock soaring from $13.50 in late 1996 to a recent $35."<< Glenn only four qtrs. of steady earnings. Amazon.com's bricks-and-mortar competitors may be able to show earnings right now but can they underprice Amzn in the short run. That would put their land-locked businesses in trouble, since the bricks and mortar part isn't a cash cow that can feed the cutthroat Internet price leader indefinitely. I'd be much more interested to see if they can get their asset turnover up close to Amzn's. Because asset turnover is due to operating acumen, Amzn's asset turnover is 16.5 to Bks of 3.28. Asset turnover is many times more important than operating margins and earnings in this current environment. Walmart kick the hell out of k mart on this point. I would rather invest in Amzn than Bks because of the lost opportunity cost even at these prices. Regards