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

To: Glenn D. Rudolph who wrote (12366)	8/2/1998 9:23:00 PM
From: Bill Harmond	Read Replies (3) \| Respond to of 164684

Amazon's model is much closer to AOL's than to conventional retailers. Amazon is executing much closer to AOL's plan: spend big and grab subscribers first. AOL lost $10 billion to get to its first 10 million members. That's $1,000 each. AOL's market cap is now $25 billion, and AOL is now an unqualified success on the way to immense profitability. That AOL-type model can work for Amazon because of the leverage in online retailing. As Mary Meeker at Morgan Stanley put it, Amazon is "swinging for the fences." If any company can do it they can: Amazon has first-mover advantage, one of the two coolest brands (critical on the Internet), powerful business momentum, increasing leverage with their suppliers, loyal repeat customers, a successful platform for line extensions, and as a friend would say "hard core" management.