Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Glenn D. Rudolph who wrote (38824)	2/8/1999 6:25:00 PM
From: investz	Read Replies (1) \| Respond to of 164687

Amazon / Net stocks seemed to take a hit today. Hopefully we will pick up to the upside. Following weeks. Another Great Amazon Associate geocities.com

To: Glenn D. Rudolph who wrote (38824)	2/8/1999 6:45:00 PM
From: Alomex	Read Replies (1) \| Respond to of 164687

You are also assuming that AMZN can command enough gross margins to produce net margins of 3-6%. IMHO this is a realistic expectation, the "no-profits-ever" view is too pessimistic. Granted, so far they are not making any money (to put it politely), but there is no law saying they have to conduct business this way for the rest of their lives. As they automatize operations and get bigger discounts from publishers and shipping companies, they could move into the black while still beating the competitors' price. The margins would be razor thin though, about 3%. Are you long AMZN? Went long on it after the big drop with a small position. I still think it trades at a premium, but after the latest drop, I thought one can make a buck trading it. So far it doesn't look good.