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

To: trouthead who wrote (37222)	1/27/1999 4:26:00 PM
From: Don Westermeyer	Read Replies (1) \| Respond to of 164684

JB, Amazing.com runs with an operating loss. With their 'expansion' they run at a big loss. Conceivably they could turn a profit if they cut their advertising expenses to the bone. Of course how many retailers do well without advertising? AMZN the company is not a scam, not at least like a lot of companies (IMON comes to mind recently).

To: trouthead who wrote (37222)	1/27/1999 4:28:00 PM
From: Alomex	Read Replies (3) \| Respond to of 164684

I just don't buy into the scam theory. I don't either. In fact my point was that IMHO this is the first time we have seen anything that could lend some support to the scam theory argument. I think they trying to create a legitimate business. I think so too. Even if they are currently selling each item at a loss, there is always the possibility that they could hike prices, like AOL did a while ago. Plus their negotiating position with distributers and shippers strengthens as they grow...

To: trouthead who wrote (37222)	1/28/1999 12:13:00 PM
From: Glenn D. Rudolph	Respond to of 164684

Your inference was about where the extra money was being applied. If you are spending extra cash an gaining new users and expanding into additional markets that is different than just losing money on each transaction. Eventually you hope to achieve efficiencies in distribution, Slow the offering of new products and contain advertising costs. At that point you will begin to profit from the sales. But at this point amzn is establishing itself. Junior, I can assure you that the cause of the loss is not merketing. It simply is gross margins are less than fulfillment costs. Profitability is impossible with this model as it stands. I readily admit that this is my assumption. I just don't buy into the scam theory. I think they trying to create a legitimate business. Rolling profits back into the company seems the best way to do this. I believe AMZn is a scam. Give it time. Glenn