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

To: JF2155 who wrote (6829)	3/29/2001 8:25:05 PM
From: IceShark	Read Replies (1) \| Respond to of 7772

It is a one trick pony. Now if it works out is another issue.

To: JF2155 who wrote (6829)	4/3/2001 6:50:35 AM
From: Doug Fowler	Read Replies (2) \| Respond to of 7772

Jim: You know I have always been a big fan of eBay - I think it best exemplifies what kind of positive change the Internet can bring. I have not always been a big fan of the stock - because it has almost always been too pricey. The first calendar quarter has ALWAYS been eBay's best for growth over the year ago period, as well as for sequential growth from the fourth calendar quarter. For example, between 1998 Q4 and 1999 Q1, eBay's revenues grew sequentially by more than 70 percent. Alas, that was two years ago. And when eBay reports later this month, you won't see sequential growth anywhere near 70 percent. It will be far less than half that. eBay is dependent on the number of items placed for bid, and that growth has slowed dramatically. The question always has been when eBay will run into a wall, and it is showing signs of running into that wall. The company needs to work on stimulating paid listings. They need to convince the mass consumer market that instead of throwing away stuff, they should sell it on eBay. Likewise, they need to convince consumers that the place to "get the best price" for new or used stuff is on eBay. Almost everybody I have introduced to eBay has gotten hooked on it. But I know a lot more people who never use eBay. Of course, convincing consumers takes lot of money, and eBay is feeling the pressure to show increased profits - so, they are reluctant to spend the kind of money needed to convince consumers. Perhaps in a better economy, eBay will embark on such a strategy. One thing is for certain - the easy, cheap growth is over... --Doug