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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: HairBall who wrote (30505)	10/6/1998 9:08:00 PM
From: NickSE	Read Replies (2) \| Respond to of 94695

save-now.com I suspect the YHOO earnings may provide one last rise. And, then these high flyers will act like the moisture in the updraft of a thunderhead that finally reaches the colder thinner air and falls to the earth as rain in a violent storm. AMAZON.COM TO TAKE A HIT?... Here's the beef: Bertelsmann, the German media giant, is about to buy 50% of barnesandnoble.com. Remember the announcement about barnesandnoble.com being spun off, or IPOed? Forget it! Not going to happen now! BTW, barnesandnoble.com lost $30 million last year. Now Bertelsmann is putting up $200 million for a 50% stake. Why? To go mano a mano against Amazon. In this biz, Amazon has a 50% share; B&N's share is in the low teens. How is Bertel going to do battle? Well, first of all they OWN Random House, Bantam, Doubleday, and Dell--they're twice as big as the next biggest book publisher. So they OWN the books. Amazon.com doesn't own any. Second, they have infrastructure, like warehouses, forklifts (love forklifts!!), mailing centers, etc. Amazon.com has little infrastructure. So our German friends are just amortizing their overhead!!! My main man Marc Gunther wonders, "Isn't this a real challenge to Amazon?" Got that right Marco!! Watch Amazon stock tomorrow!!!! pathfinder.com