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Barnes & Noble, Inc. Message Board

  • jrossmiller jrossmiller May 11, 1998 10:50 PM Flag

    Amazon vs BKS

    Does anyone have any information of who does more
    business, what the margins are and all other information?
    How long can amazon go before they are bankrupt?

    I'll attempt some research, but help is appreciated.

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    • i know some cos. report monthly "progress" info. starbucks for example. any "guesstimate" on how earnings will look this quarter? any onfo. on at least ending flat?

    • Don't go looking to see AMZN bankrupt any time
      soon. They are doing quite well. If you check their
      most recent annual report (go to the AMZN quote, click
      on SEC filings) you see that they have a gross
      margin percentage of 19.5%. While that is down a bit
      from the previous year (22%), gross margin in ollars
      increased 733% in that time, from $3.5 million to $28.8
      million. AMZN is showing a net loss because of their heavy
      marketing and development costs, which they hope will lead
      to future sales and still higher revenues. At least
      at presesnt, they certainly appear to be a viable
      and growing long term company.

      To the person
      who asked why BKS is anticipating a net is
      for similar reasons. They are putting a lot into the
      develoment of on-line sales. They normally show a profit in
      the 4th quarter...similar to most retail businesses
      who get an inordinate amount of their annual sales
      during the holiday season. And because they also have
      the retail stores, and are not a start up business
      like Amazon, they have that estabished income stream
      that contributes to net income and also helps fund the
      growth into e-commerce.

      I chose to invest in BKS
      rather than AMZN because I think that the strength of
      the name will be important in developing a solid
      on-line market. And the fact that is is an established,
      profitable company also seems to me to provide more and
      better financing opportunities to develop the internet
      presence. I like having the two business divisions to fund
      growth and minimize risk.

      But I think both BKS
      and AMZN will be around for a while...and I think
      there is room for both when talking about the sales
      volume expected from internet sales in the next few

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