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

To: Rob S. who wrote (51156)	4/18/1999 2:22:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Right now they are spending for new facilities Rob, They are not buying these facilities. They are leasing them. I think that Amazon will be able to reduce costs sufficiently to become profitable in a few years. I don't think they will run out of money. They have over a billion in cash now and are paying for acquisitions mostly with stock. The recent acquisitions was cash I believe for shares of these startup companys. It is not much cash. Likely $30-$50 million each. I do believe a lot of cash will be used to renovate these leased distribution centers. I do expect AMZN to burn this cash quckly. Time will tell.

To: Rob S. who wrote (51156)	4/19/1999 10:04:00 AM
From: John Donahoe	Read Replies (1) \| Respond to of 164684

RE: I think Amazon will continue to expand their "brand franchise" to include many other product and service areas. But in 2-4 years when they scale back growth to reduce costs, the bottom line will be thin margins that will be hard pressed to support the stock at near the level investors are willing to reward the company with now. But if they are successful in establishing their "brand franchise" the margins will be relatively fat. Don't you agree?