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

To: mrknowitall who wrote (5679)	9/29/1999 11:59:00 PM
From: Tom Markowski	Read Replies (3) \| Respond to of 7772

I think you are underestimating the power of FREE or LOW COST. Logic tells me that if Yahoo provides "auction" service for free. And now Amazon will charge $19.95 to list up to 3000 items, that can't be a positive for EBAY, which charges between $2-3 (on average) just to list one (1) item. Especially for low priced items, like cards, etc. EBAY is trading at over 1000X earnings. They earned only 0.05 a share. How fast can EBAY grow with this kind of competition and justify the stock price? Just because you are "the best", doesn't mean you will double in size. At today's prices EBAY needs to quadruple in size. Maybe they will. The auction counts will tell the tale. However, the more choices, you give SELLERS, the less important any one site like EBAY becomes. In the end, the cost of providing this service (auctions) is not that great. It's not like starting an oil company. And its' not that profitable. TM