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

To: Glenn D. Rudolph who wrote (23524)	10/28/1998 9:58:00 PM
From: LWolf	Read Replies (2) \| Respond to of 164684

Glenn… perhaps you did not read TMF article; some highlights follow First by studying Amazon.com's direction. The company has grown sales from $28 million in its first quarter as a public company, five quarters ago, to $116 million in its most recent quarter. Gross margins have climbed from 18.6% to 22.6% today. The company's Flow Ratio has always been below 0.50 -- the result of non-existent receivables and the tight management of inventory. Finally, the company has grown its customer base from the hundreds of thousands to the millions in just two short years. …………… My second suggestion would be to recognize that, as has been the case with so many great young companies, earnings are not yet the riority. Amazon would appear not to have lost $30 million in fiscal 1998, but to have invested that money into infrastructure and brand building. All told, in a few clear ways, Amazon.com has been strengthening its position through this period of dramatic growth. Substantial customer growth, gross margins edging higher, a brand gaining momentum, and tight management of the model (the low Flowie). When comparing AMZN to AOL one should be aware that AOL has been trading since '92, but any significant positive earning did not kick in until '96. The point is: give AMZN a little more time. I think they were looking for 4-5 years for profitability; (currently it's about 6 quarters) iqc.com iqc.com quotes.fool.com