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Technology Stocks : eBay - Superb Internet Business Model

EBAY 87.76

+3.0%

Dec 29 3:59 PM EST

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To: Doug Fowler who wrote (2620)	4/14/1999 12:55:00 AM
From: Stewart Elliot	Read Replies (1) of 7772

Doug, Despite your dismissal of yahoo auctions as a viable competitive threat, I believe that yahoo would be unable to sustain its current growth rate unless there were repeat users - apparently somebody is finding value in this free service. Since the beginning of the year, yahoo's auction count has gone up 92% (96K to 184K). EBAY's growth has been comparatively low, 58% (1,209K to 1906K). Over the last month, yahoo auction count has grown over 15% compared to EBAY's 3%, and incremental increase in auctions was actually around 1/2 that of EBAY's. Granted, on a market share basis, yhoo still does not come close to matching EBAY, but I'm not sure that anyone could claim yhoo is failing in this market. Despite the fact that yhoo does not heavily promote this service, it's growth is nothing short of impressive.

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