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Technology Stocks : eBay - Superb Internet Business Model -- Ignore unavailable to you. Want to Upgrade?

To: cdbud who wrote (4487)	8/5/1999 4:14:00 AM
From: Doug Fowler	Read Replies (2) \| Respond to of 7772

Bud: I am pleased with eBay as a seller. As a company, I think eBay is pretty solid. But as a stock, eBay, even at two-thirds off its high, is very expensive by almost any RATIONAL measure. Let's not forget that the underwriters priced this at $6 a share (split adjusted), less than a year ago. Then, eBay's sequential growth rate was twice what it is now. Then, Yahoo and Amazon were not in the online auction business. Then, eBay's supply (volume of items for sale) was not out of whack with demand (buyers). Now, eBay is supposedly worth more than 12 times what it was then. If we assume that the the underwriters were off by a factor of 2, and we give eBay allowance for the auction count being 4 times what it was then, we still have a stock that is worth $50. I happen to think that eBay has $50 as a bottom, because at that price Microsoft or AOL or Yahoo or Walmart or somebody will step in and make an offer for the company.