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

To: Glenn D. Rudolph who wrote (59955)	6/2/1999 5:13:00 PM
From: Wizard	Read Replies (3) \| Respond to of 164684

>>Have you ever heard of expenses? Investing is a subset of expenses. Amazon, by bringing fulfillment to the table is creating a barrier to entry to gain critical mass when its cheapest: now. As long as first movers stay aggressive, they are very difficult to dethrone. Amazon is going to need a big execution error to lose its spot as quintessential e-tailer. I don't see it. If you think Amazon is spending aggressively, imagine how much the next guy will have to spend to dethrone Amazon. Believe me, EBAY is experiencing late nights trying to figure out what to do not to get Amazon-ed. Amazon, by spending money and not worrying about the near-term bottom line, is at a tremendous advantage. Kind of like AOL investing in marketing to send CD's out and build critical mass. It worked and AOL actually staved off getting Microsoft-ed. The new thing here is that Amazon is way ahead and is still spending more aggressively than anybody. Bezos is smart. As long as the market was willing to give him cheap capital, he will use it to increase his lead. Maybe if the market pushes his stock down any more, it will accelerate the point at which he will pull back on investing and let the margins go to get the stock up and access to capital that much cheaper. However, once you do this you can't go back unless you are willing to take an even bigger hit so his strategy has been the right one.