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

To: Dian who wrote (33987)	1/10/1999 10:23:00 AM
From: Glenn D. Rudolph	Respond to of 164684

I agree totally with the point that each of AOL's new customers brings with him a guaranteed monthly fee, but I do think it is wrong to assume that Amazon.com cannot generate loyal customers, or consistent purchases. Dian, I just quoted this above paragraph as a point of reference. Your post was excellent and I see it was your first. You are also new to investing but appear ready to do well. I enjoyed and agree with your observations. Welcome:-) Glenn

To: Dian who wrote (33987)	1/10/1999 11:30:00 AM
From: Peter Bernhardt	Read Replies (1) \| Respond to of 164684

I agree totally with the point that each of AOL's new customers brings with him a guaranteed monthly fee, but I do think it is wrong to assume that Amazon.com cannot generate loyal customers, or consistent purchases. Of course Amazon has generated repeat business. Their growth in revenue speaks to this. However, it is wrong to assume that this means Amazon's business model is somehow comparable to that of AOL (which is where, I think, this thread started). Indeed, those Amazon customers who like yourself have spent $7,000 can, on a revenue basis, make up for those other customers (like myself) who have made but one purchase from Amazon and have since found that they can buy their books just as easily and at a lower cost elsewhere. Even if one were to concede this point, citing a growing customer base that includes anyone who has ever purchased a book from them as evidence of Amazon's "success" is misleading as it avoids the essential issue of Amazon being unable to sell books or anything else profitably. - Peter B