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 : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: taxman who wrote (23424)	5/30/1999 7:51:00 PM
From: blankmind	Read Replies (1) \| Respond to of 74651

Glad I don't own Amazon.com right now... biz.yahoo.com faces woes of other retailers--Barron's NEW YORK, May 30 (Reuters) - High flying Internet retailer Amazon.com Inc. (Nasdaq:AMZN - news) is facing the same woes that other retailers contend with, such as real estate costs, inventory management, marketing expenses and competition, the financial weekly Barron's reported in its May 31 issue. The article, headlined ''Amazon.bomb,'' contends that Amazon.com is not much different from other ''middlemen'' in the distribution business. Barron's notes that the stock has lost nearly half of its value since April and that several analyses indicate the stock could be worth less than $10 a share. Amazon.com closed at $118.75 on Friday, May 28. Amazon.com has built itself into an Internet retailing powerhouse with $293.6 million in first quarter sales. But the company has said it expects to lose money for the foreseeable future. Barron's said Amazon.com's growth is demanding more warehouse space and more inventory, which diminishes the advantages that it had over traditional retailers. Also, other Internet competition has developed, such as BuyBooks.com, Barnesandnoble.com Inc. (Nasdaq:BNBN - news) and Borders.com (NYSE:BGP - news). This competition has led to severe price competition, as shown by recent markdowns on best-selling books. Technology has also provided new means to distribute books and music over the Internet, which could shake the publishing business, Barron's said. Publishers and music producers can sell their merchandise direct, cutting out middlemen. NuvoMedia, a company that produces a notebook-sized computer that can download books from the Internet, could also serve as competition to book retailers, Barron's said. But the device, Rocket eBook, will have to fall from its current price of $499 before it becomes commonplace, Barron's said.