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


To: Sonny Blue who wrote (47418)3/26/1999 12:06:00 AM
From: Rob S.  Respond to of 164684
 
Neat story.

<How do you grow sales if you're a traditional retailer? You have to build more stores. Not so for Amazon. Wal-Mart is valued at $211 billion and has $140 billion in revenue. Amazon's value is at $21 billion with $1 billion a year in sales. Both retailers have gross margins of about 20%. Wal-Mart's operating margins have consistently been around 6%. Amazon fully believes it can have operating margins of 6% or better.>

Here is where Amazon (and investors) are winging on a prayer - hoping that margins will match traditional retailers that have walls to hold off competition.