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

To: Bill Harmond who wrote (38290)	2/5/1999 5:13:00 PM
From: KeepItSimple	Read Replies (2) \| Respond to of 164684

> The more Amazon sells, the less they lose on each piece. Based on what financial info? Every quarter as sales have increased losses have increased. In fact, it is accelerating! How far in the future do we have to wait until losses slow?

To: Bill Harmond who wrote (38290)	2/5/1999 5:18:00 PM
From: IceShark	Respond to of 164684

I just think that at this stage it is all a slight variant to lose money, hope we can capture a big chunk of the market, drive the weaker guys out and hope we are still standing at the end of the day. And hope all the new boyz on the block noticed what we just did and will be afraid to walk onto our turf. Only thing is you don't literally die in this biz. Might work, might not. Regards, Ice

To: Bill Harmond who wrote (38290)	2/5/1999 6:12:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Not at all. The more Amazon sells, the less they lose on each piece. William, We are increasing the denominator and in fact are increasing the numerator too. The difference is the denominator is growing faster than the numerator. As long as the numarator continues to grow or even continues to exist, what difference does it matter how large the denominator may be? This is the story Covey likes to sell. In reality, it is garbage. The denominator will continue to grow but will will also always have a negative numerator. Fulfillment costs exceeds gross margins. That is a simple concept. I do not know how many times I need to explain this. Glenn