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

To: - who wrote (60805)	6/5/1999 6:34:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164684

>> The loss is coming from their massive investment in infrastructure, capability, brand-name development, alliances, etc. --the things that will make them a success over time. Once those investments have been given time to bear fruit, to pay back, AMZN's #'s will look a lot different << Pretty soon we'll be hearing about motherhood and apple pie. Amzn's so called investments are on-going costs of doing business. They had losses prior to any warehouses. If they stop advertising and marketing, revenue growth, and perhaps revenue itself will stop. Today's advertising brings in today's sales. That's why the neighborhood supermarket sends a flyer every week. They don't do that just to reduce the tree population.

To: - who wrote (60805)	6/6/1999 1:26:00 AM
From: Mark Fowler	Read Replies (1) \| Respond to of 164684

A lot of people are looking at it wrong - they envision every product Amazon is selling as being sold below cost (thus the loss); not what's going on. The loss is coming from their massive investment in infrastructure, capability, brand-name development, alliances, etc. --the things that will make them a success over time. Once those investments have been given time to bear fruit, to pay back, AMZN's #'s will look a lot different... there is a lot of leverage built into their model & infrastructure, which I don't think is easily duplicated.<< Walmart's push to the internet even validates Amzn's model...no doubt the stronger Amzn's market leadership, the more powerful their economic model becomes. They have consistently reflected this focus. Measure them in terms of metrics, customers and revenue growth, brand awareness and degree of repeat customers and then compare them with others. Of course there strategy is not without risks: it requires serious investment and excellent execution against established leaders. So far i like what i have seen and at these prices i think it's a great value.

To: - who wrote (60805)	6/6/1999 9:57:00 AM
From: Glenn D. Rudolph	Read Replies (1) \| Respond to of 164684

A lot of people are looking at it wrong - they envision every product Amazon is selling as being sold below cost (thus the loss); not what's going on. The loss is coming from their massive investment in infrastructure, capability, brand-name development, alliances, etc. --the things that will make them a success over time. Once those Steve, I am starting to sound like a broken record. As long as fulfillment costs exceed gross margins, profits will never exist. That is a fact. One can make arguments as to how fulfillment costs will drop or gross margins will go up but the above statement applies forever. Glenn