Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Glenn D. Rudolph who wrote (31122)	12/25/1998 1:35:00 PM
From: SLN	Respond to of 164684

<<This fulfillment. Without automation, AMZN can never be profitable based on their original sales model. The traditional store has the customer do fulfillment at no charge.>> What is also significant is that the hiring of temporary workers drives costs way out of proportion. Extremely expensive to run a business with temps. I have said the following many times before beginning with a shareprice of $100: "Amazon is a pioneering company that for risky investors, it may be worth a premium. However, it doesn't justify the price at these levels." I would have never thought any stock like that could have more than tripled since then. However, I do believe we are getting closer to the bubble bursting. What will cause the burst? Your guess is as good as mine. I thought for a long time it would have been an announcement by the company that it was having a secondary offering. I finally realized that it could not successfully have one because of a lack of institutional interests. No institution would pay $300 per share for an aggregate of a couple of million shares. Nonetheless, if Bezos really cared about this company's long-term potential, he'd do a large secondary and wipe out the future debt load. He'd probably find institutional interest at around $150 per share because of the current internet hysteria.