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My thought is that if AMZN ran itself like a conventional business, with
conventional valuations, they could probably make a profit. However, they
spend so much money on acquisitions and marketing, trying to justify high
e-business valuations, that their costs make it impossible to function as a
large, efficient, profitable bookstore. I don't know if it would be
possible at this point (for a variety of reasons) for Bezos to say to his
board that they should just accept a much lower stock price and run the
company like a big bookstore without storefronts and with a good
fulfillment department.
I think that we will eventually find that there are a number of businesses
that can make money doing business on the internet, but that they need to
be treated (and run) pretty much just like any other business, not just as
a revenue source for Venture Capital firms and early investors.
Of course, that business model will be less attractive to many
entrepeneurs, but such is life.
Jonathan
At 11:35 AM 6/23/00, you wrote:
>Interesting.
>However, would you explain to someone ignorant like myself why they can't
>simply carry on selling as they are. Is it becuase the "real" book-sellers
>have caught on to the net?
>Best,
>Gram.
>-----Messaggio originale-----
>Da: Gwenael Gautier <ggautier@xxxxxxxxxxx>
>A: realtraders@xxxxxxxxxxxxxxx <realtraders@xxxxxxxxxxxxxxx>
>Cc: realtraders@xxxxxxxxxxxxxxx <realtraders@xxxxxxxxxxxxxxx>
>Data: 23/06/2000 17:24
>Oggetto: [RT] Re: STK: AMZN
>
>
> >AMZN is going to go bankrupt eventually if it is not bought out by a real
> >book seller, like Barnes & Nobles or similar. The model is unable to make
> >money under any circumstances. Now that the stock broke its neck, the
> >financing door is closed. CIAO
> >
> >That's my opinion, but I sure don't want to take the risk of "investing" in
> >there.
> >
> >Gwenn
> >
> >
> >
> >Joe Frabosilio wrote:
> >
> >> This is the first time that I've seen in my trading life a brokerage
> >> house such a Leman Brothers say " avoid this stock". Does anyone know
> >> of anyother stocks that recieved a comment like this and is still around
> >> today?
> >>
> >> It would be interesting to know.
> >>
> >> Thanks,
> >> Joe Frabosilio
> >
> >
> >
> >
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