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


To: trouthead who wrote (32655)1/5/1999 4:19:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 164684
 
I don't know what costs they have put into their marketing number. What is your point?
Is this a joke i am not getting. Sorry, I am sometimes thick headed.


Junior,

This is no joke. This is real fundamental analysis. I d agree that using fundamental analysis with AMZN means nothing to the stock price. However, for the sake of the real business world, AMZN cannot turn a profit ever as long as fulfillment costs exceeds gross margins. Fulfillments costs do exceed gross margins and AMZN places those in marketing costs so they can falsly state they coould be profitable without marketing. Fulfillment costs are variabe and will go up as sales go up.

The joke is the market cap the market has given AMZN. My point is real and has a connection to a return on invested capital.

Glenn