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: atlast who wrote (43740)	3/3/1999 9:28:00 PM
From: Sarmad Y. Hermiz	Respond to of 164684

I read that Discover Brokerage will is rolling out a trading program based on Palm Pilot and internet wireless modem. There must be a lot of other apps like that coming. But just because the internet is growing, it doesn't mean that some particular company will make tons of profits on it.

To: atlast who wrote (43740)	3/3/1999 11:53:00 PM
From: RON BL	Read Replies (2) \| Respond to of 164684

Interesting positive post on AMZN off YHOO message board. 1. Amazon achieved clear profit margins of about 20% earlier part of last year in their books division. Also, profit comes from a percentage of shipping. 2. Amazon even increased those margins to 21.8% through supply chain efficiency improvements near the end of '98 and these facts have already been well documented. Improvements came after those former Walmart execs. came in and applied their advanced know-how to the supply chain system at Amazon. 3. Based on this trend one can logically surmise that those margins on books, as well as those for other product categories are improving even as we type or read these very messages. 4. Now if Amazon then takes these profits and even adds investments from other sources of financing to expand and for marketing and content creation is this REALLY a loss? Sure for a narrow-minded bean counter we know what they'd call it. But for Amazon investors, this is an investment, not a loss in the sense you are are trying to manipulate people on the board with that term. 5. Amazon also receives payment for these items in advance from customers and does not have to pay out to creditors for the items the customer has ordered for 30 days. Therefore they can earn interest on these revenues for at least 30 days and even more as supply chain efficiencies improve over time and with experience. (Dell I believe has stretched this time period to past 100 days I believe if that is any indication of where we are headed here.) This is exactly why creating a monster revenue machine is much much more IMPORTANT to Amazon, in the long term. Much more so than putting a few pennies on q quarterly financial for the entrepreneurial challenged Lumpfrog. 6. Books Divison is ALREADY IN PROFIT. That official announcement was made. (And Fanny, don't even try and come here with you bogus "why should we believe that?" skepticism. Why should anyone believe a timing challenged shorter like you who shorted at the bottom and who bet the farm on Borders. Or was it bks? That is the real question.) 7. The same successful and ever-improving system built from the learning curve on books, applied to the later category entries such as Music and subsequently Drugs, will lead to similar successes. Similar profits, over the longer term.