eBay - Superb Internet Business Model Message Board

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Technology Stocks : eBay - Superb Internet Business Model

EBAY 83.88

0.0%

3:59 PM EST

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To: Bill Harmond who wrote (6011)	10/28/1999 8:37:00 AM
From: Rich Dee	of 7772

Another reason EBAY might not want to split is that it makes estimated EPS figures shrink to near zero. Lets say next quarter the estimate is for EBAY to make 0.02. If they split the stock 2-for-1, all of a sudden the estimate is 0.01. Furthermore, lets assume they report post-split EPS of 0.02. This doesn't look as good (just beating estimates by a penny) as it would've pre-split (beating by two cents). I know they beat estimates by 100% in both cases, but it still looks better with the bigger numbers. Just an opinion.

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