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


To: The Freshmaker who wrote (37166)1/27/1999 2:57:00 PM
From: Yojimbo  Read Replies (1) | Respond to of 164684
 
Gross margins don't matter...

sorry, but they do. in the retail business, and especially the e-tail business, profit margins are super thin. scamazon touts its non-brick & mortor strategy, which should translate into higher gross margins. what folks fail to focus on is their brick & mortar infrastructure buildout, which decreases gross margins in the form of depreciation, and their higher SG&A due to lower barriers to competitive entry.

again, there will not be a dime to be made. s&p was right in downgrading (if not agressive enough).

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