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

To: Bill Harmond who wrote (38354)	2/5/1999 8:17:00 PM
From: Glenn D. Rudolph	Read Replies (4) \| Respond to of 164684

All you'd need is one disgruntled employee to prove the statement false and the company's credibility would be shot...and it would be a violation of securities law to make such a statement if false. I'm sure it's true. William, You are missing the point. I doubt Bezos or Covey has a clue regarding the profitability of the book business. A disgruntled employee would not know either. A lot depends on how one allocates expenses. For example, the books, music and videos are all advertised in the same advertisements. To which division do you charge with the cost? Also, the distribution centers have inventory of all three items. How much of the costs of the distribution centers is attributed to books? I suspect the same people that fulfill the books also fulfill music and video. Again, how is the cost distributed? It is not just something for which we do not have numbers; Amazon does not have those numbers either. Common sense would indicate that the added distrbution centers that are needed are needed more for books, than videos. It is an added expense. No one can disprove or prove this statement. This makes the statement safe and is very good for the stock price. I personally believe it to be inaccurate if expenses were correctly attributed to each department. I, you, Covey and Bezos will never know. Glenn