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

To: Don Westermeyer who wrote (23611)	10/29/1998 12:27:00 AM
From: Don Westermeyer	Read Replies (2) \| Respond to of 164684

To be fair, I should add that revenues did go up more than 300% while expenses went up only about 250%. Even taking this into account AMZN is trending to profitability only very slowly and will need a very large amount of revenue to support the current market cap. I guess they could kill all the advertising and get profitable, but few companies would thrive without that.

To: Don Westermeyer who wrote (23611)	10/29/1998 12:42:00 AM
From: SouthFloridaGuy	Respond to of 164684

ATTENTION: INTERNET RESELLING IS A DOUBLE EDGED SWORD. The ease of use of the internet has been noted as a primary success factor for companies like Amazon in growing their top line revenues. However, it is that exact ease of use that makes it so easy for any one of us to click onto another site when we want to get the best price. Will you haggle $1 over a book? HELL YEAH, THIS IS AMERICA!!! If Amazon won't give me the best price on whatever the hell they sell, then I'll go to any other Dot.Com and buy it. By virtue of being on a medium with such ease of use they can 1) get customers 2) conversely lose customers. Without pricing ability, Amazon is just another store. Book selling is cutthroat like the fast food industry. Selling on the internet is even worse. It is evident that the ability to turn a profit in this business is very difficult (it took AOL 10 years). Amazon is NO AOL, NOT BECAUSE THEIR MANAGEMENT SUCKS, but by the business they are in. Will the company turn a profit one day, sure. But the company is no different then Barnes and Noble (who also has me in their customer base). Their valuation is absurd. The stock is worth no more than $1 billion in market cap. In the end, the only people who will turn a profit from internet reselling are the employees of these companies who have stock option.