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

To: Victor Lazlo who wrote (29379)	12/8/1998 10:04:00 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

From the Wall Street Journal Voice: WSJ_Host presents the speaker with question #93 from grudolph: John, Backtracking to Amazon. The 10Q shows that their fulfillment costs exceeds their gross margins. Therefore, without greater gross margins or reduced fulfillmen costs, profit is impossible. Are you sure this is a viable business model? JHagel says, "I'm not prepared to comment on the details of Amazon's economics. More generally, I think there are opportunities to improve gross margins and to reduce fulfillment costs as Amazon builds scale."

To: Victor Lazlo who wrote (29379)	12/8/1998 11:28:00 PM
From: getgo234	Respond to of 164684

If 75% of online orders are market orders wouldn't the brokerage firms be making a fortune on the spreads on the internet stocks ? What incentive would the brokerage firms have in narrowing the spread between the bid and ask ? Wouldn't this increase the volatility in the price movement of most securities both on the upside as well as the downside ? If the above assumptions are correct, I am very surprised to see any brokerage firms raising margin reqirements on the volatile stocks when the profits for the brokerage firms on the spreads must be heavenly. Comments please.