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

To: mrknowitall who wrote (5150)	8/29/1999 3:23:00 AM
From: Doug Fowler	Read Replies (1) \| Respond to of 7772

Mr K: eBay has hired some impressive management, which one can hope has the wherewithal to build the system to support growth. eBay said the system would experience outages over the next three to six months. I am going to assume that eBay will be able to be much more reliable by the end of the year. For me, the bigger issue is at what rate can eBay grow. 2.7M items being auctioned each week is an incredible number. Yet, eBay really needs about 20M auctions a week to justify its stock market cap. If eBay can grow at 100 percent per year, they can be there in three years -- but right now, they are struggling to grow at 100 percent per year -- and I see no reason to believe that this rate isn't going to continue to slow down. I do not believe this slow-down is due to system problems. It is due to supply (sellers) outstripping demand (buyers). eBay has to find a way to bring more buyers in -- that should be as great a concern to them as getting the system stable. The sellers will always follow the money...