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

To: Bill Harmond who wrote (48199)	3/30/1999 8:55:00 PM
From: puborectalis	Respond to of 164684

Amazon.com faces some risks integrating new services By Christine Dunn BLOOMBERG NEWS Amazon.com Inc. Chairman and Chief Executive Jeff Bezos said the Internet retailer's biggest threat is spreading itself too thin as t pands into other areas of on seller of pet food, toys and other products for animals, joining a series ofoter purchases. The moves d warehousing and distribution operations. "We're complicating our business by entering these new areas, and it's easy to put your foot in it when you're doing allthse different things," Bellenges may console analysts and investors of Amazon, shares in which have jumped 11-fold the past year. They may be less forgiving of any stumbles as it integrates its new auction steand stakriences that Amazon has set," said Marc Johnson of Jupiter Communications, a market research company Investors also word of mouth on the Internet that any failure to succeed in a particular area has the potential of damaging the brand in other areas," said analyst Sara Zeilstra of Warburg Dillon Read, who rates the stock a "hold." Expansion Amazon, which started selling books in 1995, has become the dominant Web retailer by adding items such as videos and buying tas in online companies. ments in others. "Our mission is to be in a place where people come to find and discover anything that they might want to buy online," said Bezos. "You're not going to be able to do that alone, so you have to partner." Amazon's new auctions will go head-to-head with top auctioneer eBay in allowing consumers and businesses to sell everything from Beanie Babies to computers. The retailer hopes the auction service will increase the time visitors linger at its Web site and boost sales. Amazon may profit from the site just because the auctions are run like an online classified-ad page and don't require the costs involved in handling inventory. It also will make money by listing fees and commissions on each sale. 'Impressive' "The auction site looks like a well-oiled machine and over time it will become more impressive," said analyst Lauren Cooks Levitan of BancBoston Robertson Stephens, who rates the stock a "strong buy." "They'll ask customers for feedback to help them build the store." Incorporating those responses in its site is one way Amazon can keep customers loyal, analysts said. "Since there are very little, if any, switching costs on the Internet, if people feel they're not getting the service on Amazon they can type another Web address — they don't have to go across the city," said Zeilstra. "They have to incubate the new areas of business while making sure they don't neglect what's there."