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Technology Stocks : OnSale Inc.

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To: D.J.Smyth who wrote (2691)12/22/1998 4:28:00 PM
From: j_b  Read Replies (2) of 4903
 
<<ONSL's revenue for trailing twelve months was significantly more than EBAY's>>

I should just develop a standard answer to post whenever this comment comes up - ONSL's revenue includes both product they own and straight commissions. eBay is commission only. Both companies report gross merchandise sales on their sites. eBay merchandise sales are around 2 1/2 times those of ONSL. You either have to compare the gross merchandise sales (where eBay is significantly higher than ONSL) or you compare just the gross margins. eBay had a $6 million margin last quarter, around 3 times as high as ONSL. It doesn't matter how you look at it, eBay is currently a bigger and more profitable operation (above the line) than ONSL.

That being said, ONSL has far more growth potential than eBay (IMHO), so the gap should continue to close over the next year.
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