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


To: Randy Ellingson who wrote (27443)11/20/1998 7:20:00 PM
From: Rob S.  Read Replies (1) | Respond to of 164684
 
I think price of small purchases, like typical books, is important to many people if it is 10% or more difference. If it's only 5% it may still make some difference but other factors, such as ease of browsing and familiarity, could easily outweigh it. A big factor is finding what you need and getting it when you want it. Barnes & Noble now has 4.6 million titles compared to Amazon's 3+ million. Besides braging rights, some customers who want scarce or out-of-print items will find it makes more sense to buy from Barnes~.com. That can edge the convenience picture slightly in their favor. At any rate, we are now discussing whether Barnes~.com is SUPERIOR in their offerings compared to Amazon.com whereas just a few months ago the discussion was whether anyone would ever be able to match the Amazing one. In the near future, Barnes~.com will supplement their offerings with store delivery, shorter lead-times, store locator map service, in-store multi-media kiosks and other services to go beyond what Amazon.com can offer. Amazon.com will need to accelerate expenditures to try to duplicate what Barnes~.com already has in place. This will be a battle with small margins as the reward for the next five to eight years.

The stock is rediclulously high. but that may be something that won't become clear until sales growth rates decline significantly. And that won't likely happen until the middle of next year. In the mean time, the only way to play it to the short side is to play off the extremes and the company actions that move the stock. Even then you must be very carefull - as many of us have learned the hard way.