From: (No Email available)

Date: 2000-02-25 06:17:34

Comment:

These days, everybody is launching their businesses online, and while they might get much more business than they do(or would) in the "offline world," they're virtually all losing money. Never did they have to compete with corporations spanning the globe. For many of the businesses, they were pretty localized to one area in the country, and only had a few other businesses to compete with. Now that's greatly changed. 

Many of these online warehouses(Buy, Amazon, OnSale, etc) are selling their stuff at cost or maybe a little above it, and while they generate more sales because of it, they are still losing money in alll the excessive advertising, cost cutting, and diversifying that they do. Most of the "big time" online resellers will go public if they haven't already, and while the Trading Public drives up the price of the stocks of those companies, they can continue to operate as they do now (that's one of the reasons Amazon is still around today). Once the fire in the technology sector on Wall Street fizzles out, many of these companies will go under. Most of the big companies will still be here in a few years, but I'd be willing to bet a lot of companies get out of the online arena, or at least open up an "offline" business. They'd have to, we can't have a bullish market forever, and that's what they're relying on now. The competition is too fierce.