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

To: Rob S. who wrote (57587)	5/20/1999 6:08:00 PM
From: Randy Ellingson	Read Replies (1) \| Respond to of 164685

Amazon has great sales - who wouldn't if they gave their associates 10%-15% of sales and customers $5 of stuff for $4? Do you think Amazon has negative gross margins on books? Or any product? What about the 50% off bestsellers -- are those going below cost? Randy

To: Rob S. who wrote (57587)	5/20/1999 7:53:00 PM
From: MSI	Read Replies (3) \| Respond to of 164685

Amazon has great sales - who wouldn't if they gave their associates 10%-15% of sales and customers $5 of stuff for $4? That's a big number. The assumption I'm most curious about is whether AMZN can coast on their current operations if they suspend all advertising-type line items, including "associate" fees. My concern is whether a slick website and great name recognition is enough to stay in business, if at some point they can even theoretically make money without loss-leading promotions, or if losing money is a structural problem with their business model. Any ideas are welcome.