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

To: Proud_Infidel who wrote (11379)	7/22/1998 8:56:00 PM
From: Andeveron	Read Replies (3) \| Respond to of 164684

I suppose my view on AMZN vs BKS is this: BKS will never get into other commodity markets. They are first and foremost a bookseller. They've been doing it for decades and they'll be around when my grandchildren are looking for text books. BKS also has a nice catalog mail-order business where they shift their old stock to bargain hunters. AMZN will never topple this juggernaut but I'm not so sure that Bezos wants to. BKS is responding to AMZN's presence, not the other way around. AMZN is currently a bookseller. It loses money. It seemingly has no future if one were to look at it as solely a bookseller. However it's internet retail infrastructure is a jewel. AMZN can funnel all sorts of goods through that infrastructure, maintaining minimal inventory, and scalp a margin on goods that ship directly from manufacturers. This business model is what aggregators and distributors love. They take no part in the retail transaction (read: annoying retail customers and the consequent customer service) with AMZN acting as the sales agent. AMZN will also likely get terms on their transactions with aggregators so that they essentially have a float of 30-90 days depending on the arrangement. This money earns interest. In essence, the business model and retail space that AMZN is now positioned in is valuable. As more commerce shifts to the internet, I believe that AMZN will be a major player. Looks like a lot of bulls feel the same way and they're gladly paying for it. Sure, I think the stock price has gotten way ahead of itself but blame the shorts. The squeezes that they have contributed to have made millionaires out of many traders.