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Technology Stocks : eBay - Superb Internet Business Model
EBAY 84.64-15.0%11:27 AM EDT
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To: Glenn Petersen who wrote (7726)3/5/2014 8:08:04 PM
From: Sr K   of 7772
 
EBAY hit an all-time high Friday and AT closing high today. But I side with Icahn.

"As competition in the payments sector intensifies, profit margins on all payments systems will likely start trending to zero." (That's what Hoffman said)

That is reasonably likely. Technology changes fast, and no matter what impermanent advantages PayPal has today, there are participants gunning for them. For a nearly-automated system, PayPal charges too much. There's no reason for them to charge credit card type fees when there is no float.

When they charge 1.3%, EBAY will fall 20%.

So I expect volatility and a downtrend and potentially a declining business model that will have to be replaced.

eBay will likely not be as flexible as entrepreneurs, and they will be committed to an entrenched system. Amazon and Apple and Google, mentioned by Reid Hoffman, would only be the start. There's no information or inadequate information to show a customer that PayPal is secure and the customer's information is secure. I trust numerous other participants so much more than eBay, which as the parent, is still a marketing and dot.com company. I avoid using PayPal.

Where are PayPal's servers? Have they ever been hacked?
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