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

To: MoonBrother who wrote (37073)	1/27/1999 8:40:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Key (Not Gross Margin) In traditional offline retail, gross margin is a very important metric to watch. While a successful bricks and mortar retailer can drive sales per square foot higher, there is a limitation to the traffic (and therefore revenue) that a store can accommodate before expansion or relocation is necessary. Therefore, gross profit dollars are limited by the gross margin of the merchandise. This means that gross margin is directly correlated to the offline retailer's return on invested capital. Amazon.com's revenue potential, however, is not limited by the same factors. Think of Amazon.com as a store with unlimited shelf space and an unlimited customers base. These people have no clue too but are buying the conference call hook line and sinker. Unlimited shelf space? That is why they need two more distribution centers. I admit this is becoming more comical all the time. The hype is amazing and analysts that have never been involved in a retail operation do not have a clue. They just mimic the hype from Bezos and Covey. Amazing. No margins translates to no profit no matter how one wishes to dance around the issue. MB, Thank you for the post. Glenn