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


To: KeepItSimple who wrote (57476)5/20/1999 2:28:00 AM
From: Young H. Noh  Read Replies (1) | Respond to of 164684
 
I think it is pretty clear that there is no way AMZN will become profitable on booksale or CD sale alone. No profit margin and too competitive. The only way AMZN will become profitable is to use the customer base to sell any higher profit margin items the client might want to purchase. I just do not see any one company becoming a WalMart of internet. Internet itself will create more niche players and is not be conducive to one giant e-commerce company. If anyone can do it, it would be AOL, not AMZN. There will be too many niche e-commerce players selling one specialty items. AMZN wants to convince us that it can sell all kinds of items in one site, and it does not have any choice but to do so in order to keep the revenue growing, but I am sure an e-commerce company specializing in one particular item can offer better prices. In order to keep the revenue growing, AMZN has to acquire already established companies and refer customer base to that company for a commission or sell products with a higher profit margin, but other company specializing in one product will be able to offer lower prices. Right now, it the idea of one giant e-commerce company looks sexy . . . but time will reveal AMZN's futile attempt.

By the way, I am short on AMZN at 137.



To: KeepItSimple who wrote (57476)5/20/1999 7:59:00 AM
From: tonyt  Read Replies (1) | Respond to of 164684
 
No problem with that. Borrow all you can at .03 and put the cash in the US bond market.