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

To: damniseedemons who wrote (23467)	10/28/1998 6:06:00 PM
From: fedhead	Read Replies (1) \| Respond to of 164684

But would you buy it at 118 ? Anindo

To: damniseedemons who wrote (23467)	10/28/1998 6:17:00 PM
From: Gary Walker	Read Replies (3) \| Respond to of 164684

>Amazon has assembled a terrific management team. Terrific. They are not interested in Profits only creating a successful business! That's what they said. Give me a break! This is a terrific management team? My eye! They have no competitive advantage over anyone. Check their prices versus the others. They are facing Walmart.com, Borders, Barnes, etc. There is no loyalty when it comes to books, CD's, ect. I can open 4 windows with each on-line book seller and pick the best deal. Borders won't let these guys eat their lunch. Why pay more from Amazon books? I just bought a book from Borders.com. Why? Because it was cheaper than Amazon! Nobody bothered to reply to my post that had the details because they know it was true! Look for YOURSELF! Amzn is no AOL. AOL had 90% market share in the early days. AMZN will never get to 90% unless all of their shareholders and creditors want to lose money. I'm surprise at you, Sal. You're the last person, besides William, who I would expect to be supporting the AMZN model. Apparently, you guys are in good company considering the number of analysts supporting this turkey. I have never seen such a disaster in all my days watching the stock market. The only thing saving it's demise is Allan Greenspan. If we get a recession in 1999, AMZN is dead meat, with the philosophy, "we're not as concerned about profits." gw

To: damniseedemons who wrote (23467)	10/28/1998 6:26:00 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

Not exactly. Right now, they lose ("loooosssee") money acquiring customers. The more items a single customer buys, the better. Amazon and Wall Street believe that they will hit an inflection point, afterwhich scale/leverage will kick in, in a big way. It's the same story as AOL a few years ago. The strategy is called "Get Big Fast," you would do yourself a big favor if you learned more about it. Sal, Please indulge me. I always felt I understood a retail business model but this one eludes me. Let's not use an AOL comparison because their cost of goods sold is not even close to fixed. However, AMZN will likely never obtain more than 25% gross margin. Please post some numbers. Anything logical that you wish. That would simulate profitability for AMZN in whatever year you choose. Let's assume that marketing expense as a percentage of sales will reduce. However, you nor I know how much is marketing and how much is fulfillment expenses. An example would be nice before you state to GW that he would be better off learning more about this. Where is the inflection point? Inquiring minds. Secondly, do not ever assume that your understand something better than another without being able to prove it. You post was rude to say the least and could be inaccurate. She me otherwise please. Of course, many companies have tried "Get Big Fast" and failed. Amazon has already come a long long way, however, and if they continue to execute well they'll beat the odds. A primary factor that venture capital and Wall Street buy into is management; Amazon has assembled a terrific management team. Terrific. I have heard this line too from the sell side analysts. Please tell me how they are terrific. What they are able to do that other management teams cannot. Thank you for teaching me in advance. Glenn PS If you are unable to provide a model, an apology to GW would be appropriate.