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Technology Stocks : eBay - Superb Internet Business Model

EBAY 81.31

-2.9%

Oct 31 9:30 AM EST

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To: EdR who wrote (1070)	12/9/1998 1:19:00 PM
From: Scott Hinman	Read Replies (1) of 7772

I remember when AOL crashed in 1997 for a day or so, and if I remember correctly, the stock fell sharply at the time. Ebay is holding up really well considering, but I don't think too many people are aware of the situation. Even if they get the system back up shortly, I believe confidence in Ebay will be affected dramatically. When it crashed earlier this week after the upgrade, they implied heavily that this was the last problem and everything would be okay. Now, only two days later, the whole system crashed again. It seems like they are just doing quick fixes to the system, and not anything permanent to fix the problem. Buyers are going to be angry because the auctions they are bidding on keep getting extended, so they never know when they win. Sellers are going to be mad because I imagine a lot of viewers will get sick of the constant problems, and just give up bidding. All in all, I think this will be a serious problem for the company going forward. By the way, cbs.marketwatch.com is also covering the story. Scott

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