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Technology Stocks : eBay - Superb Internet Business Model
EBAY 83.82+3.7%Nov 7 9:30 AM EST
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To: Nelson Chang who wrote (6295)1/23/2000 1:51:00 AM
From: Nelson Chang  Read Replies (1) of 7772
 
As for EBAY being profitable, I don't even consider this company profitable.

In fact, I am significantly more impressed w/ some companies that are extremely in the red.

Ebay is just barely profitable. Granted, they have a high profit margin but their net income is just barely in the high millions. The reason they are profitable is that they are doing squat on the expansion or innovation front. The moment they make any sort of innovative move, they will probably be back in the negative.

Yes, on the otherhand, I don't think AMZN is doing such a good thing either by expanding like crazy while taking such huge losses. So I don't like either extreme. But to sit "stagnant" like this for an internet company...

What I don't understand is this. EBAY has already proved to the community it can be profitable. And it has tremendously high margins. Why doesn't it expand already, take a few quarters of losses, and be innovative, reinvent itself.

The old profitability story (at the cost of innovation) is getting old w/ EBAY as is the old loss story w/ AMZN.

Then again, maybe EBAY has been secretly reinventing itself in the past year unbeknownst to the public or press. Hmmmm...then again, maybe not.
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