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

To: Victor Lazlo who wrote (32877)	1/5/1999 11:41:00 PM
From: DAY TRADER	Read Replies (2) \| Respond to of 164684

HELLO THEY INVENTED ONLINE ECONOMIES OF SCALE. THEY WERE THE FIRST MAJOR ONLINE RETAILER, WHICH IS WHY THEY HAVE THE MAJORITY OF THE MARKET DO YOUR DD FIRST! DT

To: Victor Lazlo who wrote (32877)	1/6/1999 6:01:00 AM
From: Skeeter Bug	Read Replies (2) \| Respond to of 164684

victor, "aggressive pricing and discounts" means they "cannot achieve economies of scale; that their costs are escalating well beyond the projections of their latest business model and that they simply offer no benefits to the consumer that many other retailers do not have." exact same thing merely stated differently the only caveat is that they do offer what many retailers don't have - a web site to buy stuff. only problem is that people won't pay up for this differentiation...

To: Victor Lazlo who wrote (32877)	1/6/1999 9:15:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

I do not believe the line about aggressive pricing and discounts being part of the reason for their continued losses. I believe that: they simply cannot achieve economies of scale; that their costs are escalating well beyond the projections of their latest business model; and that they simply offer no benefits to the consumer that many other retailers do not have. Victor, It is not pricing. It has been pointed out on this thread that AMZN is typically not the lowest price. It goes back to my initial statement which will hold true forever. Gross margins do not exceed fulfillment costs, therefore until that occurs, profitability is impossible. There is no more economy of scale to be had in fulfillment and I doubt also in the cost of goods sold. FA is really not important here anymore. There is no correlation between the price of the stock and FA. I was short way back prior to the first split at $80. Now it is $900 based on that number and based on the open indication. It is time I move to an investment vehicle and out of the casino. Glenn