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Amazon do not loss of the
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Amazon do not loss of the
Reporter: Amazon, as the banner of e-commerce, recently encountered a lot of problems with the decline in stock price volatility is relatively large, the problem in the end what went wrong? Internet stocks presage a trend of differentiation will occur? Domestic Internet companies on how to seize the opportunity? Reporter with the China International Iron and Steel Investment Analyst Mr. Zhang Yin corporate strategies have been discussed. Reporter: Amazon released the fourth quarter of 1999, reporting a loss of 0.55 U.S. dollars per share, higher than analysts expected, it started to increase again to its controversy. ZHANG Yin: In fact, Amazon has been in a great controversy, not just this time. The capital market value once created the miracle of wealth and the reality deviates from the contrast between the profitability of the business so strong. This year, Amazon’s share price slump, with this. Especially since Yahoo and AOL on behalf of those of the network economy began to profit, it is clear the Amazon in a rather awkward situation. Reporter: But it’s sales or number of customers on the rise, some analysts on Wall Street of its future profits is also confident. ZHANG Yin: Yes, there is no where these achievements, there will be more troublesome things, the company will become a pure foam products and spend a tiger. I think the problem may appear in the Amazon management and operation. Reporter: According to the report, Amazon losses mainly in equipment costs and marketing promotional costs and whether there will be a larger change in the future? ZHANG Yin: stock market capital value of the game, after all, no substitute for physical business. This is a business in the capital market, financing and operation of enterprises in the real difference on the market suitable for the concept of the capital market can be said that the story begins, technological progress is the content, go on is the need to operate.
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