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Technology Stocks : eBay - Superb Internet Business Model
EBAY 82.90+0.2%Dec 2 3:59 PM EST

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To: Steve Antonelli who wrote (4121)7/15/1999 12:23:00 AM
From: Doug Fowler  Read Replies (1) of 7772
 
I've always considered eBay a smart acquisition candidate for AOL, Microsoft, Yahoo or Amazon.

If eBay falls to the $10B market cap, I would think the likelihood of an acquisition would increase.

BUT, eBay has to resume decent growth to be attractive.

I mean, if eBay gets stuck at 2.5M or 3M auctions, and assuming the company could produce 25 percent after tax profits (which should be relatively easy), and then assuming 30 percent ANNUAL growth going forward, eBay would be worth only about $1.5B, or less than 10 percent of what it currently sells for.
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