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


To: Art Bechhoefer who wrote (59634)6/2/1999 7:50:00 AM
From: Glenn D. Rudolph  Respond to of 164684
 
Glenn, if there were no profits in the projected future, as you state, then it would be
truly irrational for a company to continue at all. The AMZN business plan, however,
creates the potential for profits by NOT having to pay higher operating costs of
traditional retail outlets, and by relying on lower cost warehousing operations. A retail
operation, moreover, would be forced to find knowledgable sales persons who could help
customers find the merchandise they want. Putting all this expertise online, spreads
relatively lower costs over relatively larger numbers of customers. I see nothing wrong
with that approach to doing business. That said, I am not recommending purchase of the
shares at this time, nor have I recommended them previously (except briefly as a short
sale).


art,

I have been through this argument so many times it is futile to do it again. Suffice it to say that AMZN's costs are not fixed or even close as the the strong bulls first were stating.

Glenn