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

To: Glenn D. Rudolph who wrote (44357)	3/7/1999 12:22:00 PM
From: Frost Byte	Read Replies (1) \| Respond to of 164684

Henry Blodget on Amazon: Henry Blodget: We think they will make a profit. We think the management team has made a decision and it's been a great strategy thus far, which is to build for shareholder value in year four, five and six, not year one, two. And we really believe that the company actually could show a profit right now if they wanted to, if that was the goal. And unfortunately, if they did, what that would mean is that the shareholder value in year four and five would be much lower than it will be if they continue to do what they're doing, which is investing for a much larger future. You obviously have to have a lot of faith to buy into that, and part of my faith in Amazon is having spent time with the management team. I think they're brilliant, I think they're motivated by a lot more than money, and I think they're doing the right thing. And I would just point to an America Online (AOL:NYSE), which for years was the joke of the Street because they couldn't make any money, and Steve Case was always saying, 'We're not running the company for Wall Street. We're running it for market share.' And now it's the blue-chip of the Internet, and they are huge. And I think Amazon has the same potential. : I see profitability with them when it makes sense. They have convinced the Street, and I think they've done a great job of it, that they are a very disciplined management team. They have the tools necessary to make the right financial decisions for long-term value, and when those tools tell them that it's time to start cranking back on the expense leverage and starting to show a profit, I think they'll do it.