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Technology Stocks : Alphabet Inc. (Google) -- Ignore unavailable to you. Want to Upgrade?

To: Dave who wrote (7477)	2/13/2006 12:11:17 PM
From: GVTucker	Read Replies (1) \| Respond to of 15857

Dave, RE: While in this business barriers to entry are very low, I would argue that barriers to success are very high. I don't know about that. Google has definitely been taking some of eBay's market away. AltaVista's success certainly didn't prevent Google from having success in the same market. There are tons of realtor-driven sites, and yet that didn't prevent Zillow from becoming almost an overnight success. And what about the explosive growth of craigslist? All of those sites could arguably be considered competitors, slicing up different segments of the market and succeeding in their own way. They're certainly successful. One example that comes to mind is Internet Auction sites such as Ebay, Overstock, and Yahoo!. The latter attempted to compete with Ebay in terms of price, but Yahoo! and Overstock never achieved the scale that Ebay possesses. You are correct that eBay has maintained its market lead, but economics has still managed to work. Recall eBay was forced to rescind a price increase about a year ago, and net income growth has begun to slow. The stock has gone nowhere for a year now. And that's a company that was a winner!