May 11, 2005

Amazon stock downgraded due to rising discounts, shrinking margins . . .

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It was little noted elsewhere, but a brief Forbes report observes that Standard & Poor’s Equity Research “downgraded Amazon.com to ‘sell’ from ‘hold'” Monday, saying it expected the company’s “sales growth to moderate this year, reflecting a maturing business and increasing competition.” S%P also predicted smaller operating margines “because of the company’s heavy discounting and free shipping promotions,” among its other large investments.

Dennis Johnson is the founder of MobyLives, and the co-founder and co-publisher of Melville House.

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