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

To: Lizzie Tudor who wrote (35887)	1/21/1999 5:59:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

I think Amazon is a buy. I worked on some of the distribution automation at Dell (and manufacturing but Amazon is concerned with distribution) and Amazon is making investments in the distribution channel for all kinds of goods. They have hired a bunch of ex-Walmart executives to do the transition into mainstream retailing - not sure which products they will start with, but whatever it is they will expand outside of just books and CDs. There were certainly a lot of naysayers at the beginning with regards to the Dell business model. I dont think Amazon is that much different. They just have to pick and choose the correct product lines. Michelle, I do not agree with your conclusion but you gave me a reason. That satisfies me. Thank you. Time will be the altimate factor. Glenn

To: Lizzie Tudor who wrote (35887)	1/21/1999 8:28:00 PM
From: Yikes	Read Replies (1) \| Respond to of 164684

There were certainly a lot of naysayers at the beginning with regards to the Dell business model. I dont think Amazon is that much different. Just one BIG difference: Dell is profitable. Dell's secret is in cutting the cost of inventory and overhead associated with building computers. The overall savings are large enough, so lower prices are passed on to the consumer while Dell still profits from the process. Amazon doesn't build anything, it's just a middle man. It can only cut distribution costs. But whatever it sells, the consumer can go directly to the supplier for lower prices on their next purchase. Without duplicate Amazon's supposely superior distribution system, someone else on the net will sell the same items for cheaper or at-cost (see OnSale and Buy.com). The fact is, Amazon is not profitable right now. And it may NEVER be profitable. The stock price didn't just get ahead of itself this month - it got ahead of itself for several months. When the dust settles, look for a price range between $20-$30 per share.