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I don't understand. Why does Newegg have to be as big as amazon? Is the IPO being done at a market capitalization near Amazon's?
by Dilpil 17y ago
I don't understand. Why does Newegg have to be as big as amazon? Is the IPO being done at a market capitalization near Amazon's?
- Nwallins 17y agoLarger players tend to have a competitive advantage over smaller. This can be things like economies of scale or supplier bullying. Having Amazon as a competitor will make it hard to make a buck, but if they do, they will clearly be a very strong operation. I think staying private has helped them compete with Amazon up til now. Things like SOX compliance costs and disclosure requirements will add overhead.