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Technology Stocks : eBay - Superb Internet Business Model
EBAY 80.84-0.2%3:59 PM EST

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To: Kailash who wrote (2212)3/12/1999 10:05:00 PM
From: Doug Fowler  Read Replies (1) of 7772
 
Ok, you asked, here it is:

First, revenues through 2005:

1999 - $200M
2000 - $700M
2001 - $1.8B
2002 - $4.0B
2003 - $7.5B
2004 - $12.0B
2005 - $19.0B

Next, after tax earnings through 2005:

1999 - $25M
2000 - $100M
2001 - $400M
2002 - $1.0B
2003 - $2.2B
2004 - $4.0B
2005 - $8.0B

P/E for final year: 50, stock market cap: $400B

eBay is going to DESTROY the newspaper classifieds business, and that is where a lot of its future revenue growth is going to come from.

And eBay has so MANY directions it can go in: international markets, local markets, job recruiting, product launches, etc.

Let me give you one example of how I used eBay:

I am a co-founder of a small software development company. Back in November, we wanted to sign up beta testers for our first product, which records Internet and PC activity.

I spent $50 and ran a featured auction on eBay, with the hopes of signing up a few decent beta testers.

I had to end the auction early because more than 120 people had signed up. And the quality of these beta testers was as good as other beta programs we have performed in years past.

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