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

To: John Donahoe who wrote (44387)	3/7/1999 2:27:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

I don't know if it's a lease or purchase. I assume they will do what makes the best business sense. John, Why are you assuming when it states specifically in the press release, the 8K and the 10Q they are leasing? It even states the term of the lease and the firm from whom they are leasing. No need to make assumptions. My recollection from news articles is that it is located in Nevada to decrease shipping times. From the 10K "Company entered into a long-term office lease, which will result in increased lease obligations commencing in 1999, and, in December 1998, the Company leased a highly mechanized distribution facility in Fernley, Nevada, which is expected to begin operations in 1999. Bringing these facilities to operational readiness will require significant leasehold improvement and capital expenditures, and require the Company to stock inventories, purchase fixed assets and hire and train employees. The Company intends to establish one or more additional distribution centers within the next 12 months, which would require it to commit to lease obligations, stock inventories, purchase fixed assets, hire and train employees and install leasehold improvements. In addition, the Company has announced plans to continue developing distribution infrastructure to increase efficiency and support greater customer 22 demand and to increase its inventory to provide better availability to customers and achieve purchasing efficiencies. " believe Nevada real estate is fairly cheap and hourly wages are probably lower on average then say, Seattle and other large metropolitan areas. I presume Amzn has investigated these factors and made its purchase/lease decision accordingly. Amazon specifically stated they are bringing down some of their fulfillment people from Seattle and hiring additional ones. From their 8K: " NEW DISTRIBUTION CENTER TO OPEN IN NEVADA As a next step in its expansion plan, Amazon.com obtained a highly mechanized distribution facility in Fernley, Nevada. The Nevada location will reduce standard shipping times to key markets in the western U.S. by a full day. Further, the 322,560 square-foot facility will allow the company to significantly increase the number of books, CDs, and videos kept on hand for immediate shipment to customers. The result is that customers in such places as Los Angeles, San Francisco, San Diego, Phoenix, and Houston will receive their orders much faster, thanks to greater availability, faster processing, and shorter delivery times. The distribution center will be leased by Amazon.com and is expected to begin operations during the first half of 1999." No reason to assume in my opinion. Glenn

To: John Donahoe who wrote (44387)	3/8/1999 8:28:00 AM
From: tonyt	Read Replies (3) \| Respond to of 164684

>I don't know if it's a lease or purchase. I assume they will do what >makes the best business sense. Why would you assume that? >I believe Nevada real estate is fairly cheap and hourly wages are probably lower >on average then say, Seattle and other large metropolitan areas. Someone stated that it is a lease, so why wouldn't they buy if r/e is cheap in NV? With automation, a lot of $$$$ will be spent on LI, so I would like to know why they chose to lease. Also, with competition from the Casino's for labor, I wouldn't assume that labor is cheap in NV.