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


To: Doug Fowler who wrote (6291)1/17/2000 10:01:00 PM
From: Terr  Read Replies (2) | Respond to of 7772
 
Doug - let's see

YHOO's PE - 400 - 500
MSFT's PE - 70 - 80
EBAY's PE - 1400 - 2000

Will YHOO's or MSFT's PE go down *seriously* if it buys EBAY
(considering it will have to pay premium on it as well) -
yes.

Would that acquisition be badly dilutive to the stock of
either company if one of them buys EBAY? - yes

Would that be a good deal for a company - no

As for price/sales ratio - in EBAY's case it is meaningless.
What is "sales" for EBAY? If an item goes for $100, was it
EBAY that "sold" it? Does $100 go to "sales"? That would be
very creative, but false.