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

To: llamaphlegm who wrote (9909)	7/10/1998 12:21:00 PM
From: DancesWithFedCalls	Read Replies (1) \| Respond to of 164684

Logistics... Amazon is supposedly building a new distribution center now (their third one, I think). I saw an article a few days ago that stated that Amazon was actively increasing their inventory in an effort to increase their margins. The article went on to say that this would pose cash flow problems for them. Stories about increasing inventories, dramatically increased staff, and higher internet advertising costs but low click-through leads me to expect that Amazon will be reporting dramatically higher expenses this quarter. This should translate into dramatically reduced margins (maybe a drop from 22% to 15%?). They may exceed their expectations for revenue, but I think some of the other numbers will not be as pretty. Unfortunately, I suspect the real impact from these expenses and from the aggressive competition now presented by BKS, BGP, Bertelsmann, et. al. won't really become obvious until next quarter. -dances