Hmmm. Last I checked, YHOO had a market cap of ~$20B and AMZN, ~$15B
stock splits don't have the impact they once had, because many investors bid up stocks in anticipation (there's been so many stories on the subject).
anyway, my point was that each doubling gets harder to accomplish: going from $50 to $100 is significantly easier than $250 to 500 - in this case, the doubling now requires 5 times as much market interest. I definitely won't say it's impossible, but it just seems inconceivable because that level of $ requires a more serious investor, and my take is that most of the new buyers are investment novices or day traders. Also, the shorts will become even more aggressive once the price goes up. Professional shorts are able and willing to hold for much longer periods of time, and it's just a matter of time before this stock takes a dive.
I highly doubt Meeker is recommending to her clients to buy EBAY at these levels, and she's the biggest internet bull of them all. I know of one EBAY holder who has 100 IPO shares. Granted, it's only 100 shares, but he's got a $23,000 income hit if he sells, subject to marginal rates. I'm fairly certain he will sell the first week in January. Something tells me that there are a bunch of holders in this situation. |
