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

To: Art Bechhoefer who wrote (59222)	5/30/1999 2:33:00 PM
From: 16yearcycle	Read Replies (3) \| Respond to of 164684

Art, we are all intimately aware of the info in the Barron's article. If this creates a big drop, it will be an interesting development since everyone already knows all this info. I have no doubt that Bezos will attempt a few counter punches, after the initial dip. I would. I am getting progressively more bullish on amzn, while the thread gets more negative. I expect 200 by July 5-10. It's ok if I am wrong, amzn is 4.5% of what I have, and it is a speculation.

To: Art Bechhoefer who wrote (59222)	5/30/1999 3:14:00 PM
From: H James Morris	Read Replies (1) \| Respond to of 164684

>>Gene, I'm new to this thread, << Art, your new to this thread, so please welcome. Your entering the most controversial stock in the history of Americas Investing. Never in the history of Wall Street has a stock caused such debate. Even the little kids on the street now say "Don't Amzn me" when in my day it was "Don't hit me". Enjoy this thread, it's almost as good as sex. I said almost;-))

To: Art Bechhoefer who wrote (59222)	5/30/1999 11:44:00 PM
From: -	Read Replies (2) \| Respond to of 164684

Art, A very thoughtful post. As anyone who buys through AMZN knows, they really finesse the customer with all kinds of special services, perks, they are paying a lot of attention to human side of doing business with them, creating tremendous customer loyalty which reflects how they do business. The "one click order", those little post-its they send you, the emails you can setup on different interests, etc. all add up to brand-name building, customer loyalty. It can actually be "fun" to buy something on their website! They know how to e-tail better than anyone that I've found, which has to be a very valuable asset, on a large scale. Not easily replicated by others, either - the essence of many incredibly successful businesses look like that. I'm not long AMZN myself (I just scalp and swing-trade them, long and short); just how I see it (and I do buy all my books there now, using one-click ordering which is a kick). -Steve

To: Art Bechhoefer who wrote (59222)	5/31/1999 1:27:00 PM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

Gene, I'm new to this thread, but after reading the BARRON'S article, could not ignore it. Gene, Welcome to the thread. We always can use new thoughts. What the article completely and totally neglected, however, were the unique services offered by AMZN to its customers, including searching, reviews of books and recordings, lists of items that might interest the customer, based on other customer interests, extreme care not to overcharge on postage and handling, etc. This is not true at bn.com? I also noticed your focus was mostly on the core businesses such as books and music. Please keep in mind they can never be profitable as long as fulfillment costs exceed gross margins. I heard that somewhere before<G> AMZN is clearly building loyal customers. As far as what the customer pays, consider that for many people, going out to a retail store, even one that discounts, would be considerably more expensive and time consuming, assuming one could find the right merchandise. This begs the question regarding online competition. Though I judge investments on fundamentals (not on the basis of technical analysis), factors such as customer service are important in creating a difference between stores that sell essentially the same products. To keep this edge, AMZN recently bought a software firm, just to obtain services of the kinds of experts that have given AMZN the edge in online selling. Please explain what edge. Glenn

To: Art Bechhoefer who wrote (59222)	5/31/1999 4:03:00 PM
From: Cap_Loss_Cfwd	Read Replies (1) \| Respond to of 164684

>>AMZN is clearly building loyal customers << I have no doubt that they are to some extent but there cannot be enough of them (loyal ones) to ever justify the market cap. Since loyalty is a concept that relates primarily to relationships among people I question whether true loyalty can ever be achieved in E-commerce. Also, in retailing loyalty rarely overcomes price disadvantages. AMZN's success to date is attributable to the fact that the products they sell (books, music) were carefully selected for maximum value/shipping cost and are products purchased principally by professionals, academics and students and other intellectuals. Among this group probably 90% in the U.S. already are internet users. When the next 100 million U.S. internet users come on line will they come and check out this AMZN thing and start buying obscure books or will they go and check out the sales at WALMART.com?? I know what I think the answer will be. Slowing growth (as Bezos has consistently projected), no margins, increasing costs and investment in high-risk ventures, high leverage equal very high risk of spectacular failure.