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  • iamaneightincher iamaneightincher Jul 27, 2000 12:20 PM Flag

    Here's a reason why AMZN is suffering.

    """ Amazon said its U.S. books, music and
    DVD/video unit turned a $10 million pro forma operating
    profit in the quarter, compared to an $11 million loss a
    year earlier. Sales in the division rose 38 percent to
    $385 million.

    But Amazon's ``early-stage''
    businesses, including newer areas like hardware, kitchen
    supplies and patio furniture that it has expanded into in
    recent months, lost $64.9 million, compared to $40.1
    million a year earlier.

    Bezos said those product
    lines would become increasingly important as Amazon's
    loyal base of 23 million, mostly high-income,
    well-educated, consumers started buying more goods from its
    site. """

    No Bezos, you're wrong. High-income,
    well-educated people often like to go to a nearby store where
    they can pick and feel the kitchen appliance/patio
    furniture they're buying. They are discriminating
    individuals for whom nothing beats the feeling of going to a
    store and sitting on a patio furniture and then
    deciding whether they want to buy it or not.

    business model for books is right; but it's not the same
    for the rest.

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    • Bozo is trying to apply a "one-stop shop" theory
      like PCLN or "Walmart on The Net". Problem is - these
      guys are getting crushed so bad it's not even funny
      because of the reasons you stated - people want to touch
      and feel. I knew this model was gonna crash right
      from the start...needless to say, I've shorted it many
      a time. Prior to this earnings announcement was no
      exception - this is the 8th consecutive earnings
      announcement the stock has gone down hard. Cheers!

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