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Technology Stocks : Internet Analysis - Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (369)	5/14/1999 1:34:00 AM
From: musea	Respond to of 419

Chuzzlewit, Yes, I understood the point of your "analysis." Sorry if I didn't make that clear. I can't see 6% margins at all, unless the character of discounting changes drastically or the discounter can own or at least partner with the supply chain. The problem in this specific case (AMZN) is that they do not own any part of their supply chain (in fact, it belongs to competitors in some cases) so that in order for them to partner with their suppliers (something DELL does quite well) they have to grow tremendously. I think that this thinking is behind the "growth at the expense of profits" attitude that Bezos is taking. The craziness of market caps extends, albeit in milder form, to other sectors besides the internet stocks. What makes the analysis in this case so interesting is the amount of money that seems to change hands, both via the internet itself and also via the stock market. I suppose this is a variant of the "5 billion flies can't be wrong" argument! -musea