Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Amazon.com, Inc. (AMZN) -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (23058)	10/26/1998 12:06:00 PM
From: OtherChap	Read Replies (1) \| Respond to of 164684

>Posting material, non-public information about companies, without the >authorization to do so. So you believe my info to be correct? Oh, that's right, you have lunch with Mary occasionaly, you'd already know these things, right? :)

To: Bill Harmond who wrote (23058)	10/26/1998 10:28:00 PM
From: Glenn D. Rudolph	Read Replies (2) \| Respond to of 164684

The bids keep rising for eBay shares By Darren Chervitz, CBS MarketWatch Last Update: 5:20 PM ET Oct 26, 1998 SAN JOSE, Calif. (CBS.MW) -- Shares of newly public eBay jumped 46 percent Monday after the Internet analyst at Donaldson, Lufkin & Jenrette started coverage of the online person-to-person auction service at a "buy," setting a $100 12-month target price on the stock. Shares rose 23 1/4 to 73 3/8 on volume of more than 6.8 million. The company went public in late September at $18 a share. The San Jose, Calif.-based company (EBAY) will report its third quarter results on Tuesday, but analyst Jamie Kiggen was not waiting to give his extremely enthusiastic thumbs-up for the stock. In his report, Kiggen wrote: "eBay displays all of the characteristics of an Internet category leader: a huge market opportunity, significant competitive barriers, an increasing returns business model, and a massive, loyal and growing customer base." Kiggen said he expects eBay to beat his revenue estimate of $10 million for the third quarter. He sees the company earning 3 cents a share on a pro forma basis, in line with the analyst consensus estimate compiled by Zacks Investment Research. EBay allows Internet users to buy and sell things among each other in an auction format. EBay does not handle any of the goods being sold but charges sellers a listing fee of between 25 cents and $2 and then a successful transaction fee ranging between 1.25 percent and 5 percent of the cost of the good sold. At the end of August, the company had more than 1.1 million accounts. Kiggen expects eBay will have 645,000 sellers at the end of 1999, each with a lifetime value of a little more than $6,500 each. "We're not kidding when we say eBay's absolute size of market rivals that of Amazon, and its overall profitability rivals Yahoo!," he wrote. "We think the comparisons don't end there, and we would not be surprised if a few years from now we will have raised our target price several times." One of the biggest fears associated with eBay is that other Internet sites, such as Yahoo! and Excite, which have started similar auction services that are fee for all users could steal market share or force eBay to cut its fees. Yet eBay Chief Executive Meg Whitman told CBS.MarketWatch.com that she is not too worried about the competition. "The main two things that sellers are interested in [are] did their item sell and did they get the highest price they possible could have for the item," Whitman said. "If they get those two things and have to pay a small price to do it, they're happy to, relative to not getting those two things and have it be free." See rest of interview at IPO First Words