Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: ML who wrote (56083)	5/8/1999 8:28:00 PM
From: Cap_Loss_Cfwd	Read Replies (1) \| Respond to of 164684

>>Does anyone on this thread have your own fundamental analysis for Amazon.com? << Several of us did at one time and it cost us big since any reasonable fundamental analysis leads to the conclusion that you should go short (IMO). On this stock fundamental analysis still is not relevant. It continues to be a trading vehicle, although there are a few true believers who think of AMZN as the potential "Walmart of the web". If you are not a momentum unvestor my advice (FWIW) is to shut off your computer and do not look at AMZN again until it hits $30. As to when it will make money, noone knows. At this point their strategic moves have been directed toward top line growth with little apparent concern for the bottom line.

To: ML who wrote (56083)	5/9/1999 9:40:00 AM
From: tonyt	Respond to of 164684

Re: Fundamental analysis Its best to wait till Amazon makes a profit before doing any FA.

To: ML who wrote (56083)	5/9/1999 10:24:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Fundamental analysis: Does anyone on this thread have your own fundamental analysis for Amazon.com? In other words, a calculation which says I think they'll start making profit in year X, and I calculate therefore... ? ML, All I have done during the last year is post fundamental analysis. It is on this thread and you need to go back just prior to fall to see a lot of it. My conclusion is AMZN can never be profitable as long as fulfillment costs exceeds gross margins. I can't make an argument for them gross margins to ever exceed fulfillment costs. That is a very short synopsis. Glenn

To: ML who wrote (56083)	5/9/1999 10:39:00 AM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164684

>> Is there any such thing as a bullish fundamental analysis on this stock? If there is, I'd like to understand it. The bullish case is very simple, and not bogged down with numbers and calculations. Amazon will use its large cash from the converts to establish an unchallenged position as internet retailer. They will build the strongest infrastructure and brand. It will be so obvious to any challenger that to compete they must invest (and lose) billions. Therefor competitors will stay away, and Amazon will be dominant, and set prices at a profitable level. That is why the bulls with millions invested are not discouraged by losses, and why losses are an essential part of the strategy. It is only the prospect of large losses that can deter competition. Therefore, large losses and deferred profitability are not a breakdown of the strategy, but just a grander implementation of it. This is my impression. I personally do not trade amzn on fundamentals.