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

To: Doug Fowler who wrote (854)	11/22/1998 8:42:00 PM
From: mod	Read Replies (1) \| Respond to of 7772

Can somebody tell me what is wrong with my math? According to eBay: <<Over 12,000,000 page views per day!>> So if they started selling banner ads, one per page, at a rate of $20 per thousand (a common banner ad rate), I get potential revenue of $240,000/day or $87.6 million annually. And if you assume multiple ads on a page (let's say 3), they get $262.8 million annually. And if you (conservatively, I think) assume they will double their page views in a year, you could double that number to over $500 million by the end of 1999. And if growth quadruples in 2 years, we are talking a run rate of over $1 billion/year! If I am doing the math correctly (someone please correct me if I'm wrong somewhere), eBay could drop their fees and switch to an ad-based revenue model easily, and be quite profitable. Maybe even enough so to support their current market cap. Dennis