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

To: getgo234 who wrote (58573)	5/26/1999 1:10:00 AM
From: Chung Lee	Respond to of 164684

not sure if this has been posted. Why we own Amazon: The real estate of the leading e-commerce site on the Internet will be worth its weight in gold one day. Sure, you laugh -- a site on the Web doesn't weigh anything. The sentiment has apparently turned against Amazon (Nasdaq: AMZN), and we like that. The company and its stock have had an amazing two years, but of course this isn't the first time that doubts have lingered. Doubters have always overshadowed the company. Management has never said that it would be profitable anytime soon, but now the Wise are saying investors are tired of waiting for profits, so the stock is declining. Maybe. More likely, though, Amazon's stock is experiencing typical volatility for a new issue (this puppy is only two-years-old, after all -- still an infant on the market), and the Wise are using a lack of profitability as an excuse for the falling stock. We don't mind falling stocks, however, because we don't plan to sell anytime soon. We mind falling businesses and we don't see any falling businesses in this portfolio. We see only rising businesses, and Amazon's is one of the more promising. Eight million users could turn into 20 million in five years; five primary product offerings could turn into ten offerings; millions in losses could become hundreds of millions in losses. I joke. Eventually, management at Amazon will reel in its immense marketing and business development expenses and work to run a tight online ship that serves millions of customers daily at what could become one of the lowest operating costs per retail customer of any retailing business in operation. They're not idiots over there in Seattle. They're spending now. Expect losses. Bezos wants to gobble up as much of the online markets as he can. The pricing of many products online will probably follow a traditional curve that eventually leads to a few leaders pricing items slightly above cost and clearing a consistent profit. Nobody wants to put others out of business by destroying oneself, too. Or, prices might fall to "at cost" levels and money will be made through other means -- advertising, referrals, transactions, etc. If anyone can do it, Amazon with its leading customer base can. The leading online retailer is now valued at $18 billion. Considering that the online commerce industry is expected to be worth a few trillion bucks in five years, if Amazon can profitably grab just a tiny fraction of that business, the stock should -- in 2005, 2010 -- prove a good investment today. *****That's providing that Amazon's business is executed successfully into profitability. Many businesses aren't. fool.com

To: getgo234 who wrote (58573)	5/26/1999 8:58:00 AM
From: Glenn D. Rudolph	Respond to of 164684

Do you think a significant improvement in the 30 yr treasuries (yields dropping to the 5.50% level would be enough to spark a sharp rally for the internet stocks in general ? No! The Street.com (Jim Cramer) is suggesting tonight that we need to see the cancellation of half a dozen internet IPO's to make people feel more comfortable with the supply/demand issue in the internet market. Your and others comments. I agree with Cramer and also believe AMZN needs decoupled from the profitable or moving towards profitability nets. Glenn