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

To: Ultimate Investor who wrote (894)	11/24/1998 12:15:00 AM
From: James1000	Respond to of 7772

eBay now has competition. Hasn't anyone noticed? Yahoo offers free auctions that imitate eBay almost exactly, although the site isn't organized half as well. On the other hand, eBay's 2.5% charge might as well be free to most people(it is to me); especially if you get just a few dollars more at eBay. >Ultimate Investor- A stocks fair value is an imaginary number. Amazon.com is making negative $1.75. What are they going to do differently in the future that will make this any different? This means they are worth nothing. The same goes for all internet companies except eBay that I know of. I know one thing, there is not going to be less internet competition in the future. Although internet stocks will skyrocket for now, it will not be possible to do so for much longer. First of all, the economy will have to slow down in the next three years partially due to the U.S. savings rate being at -4%, its lowest rate since the great depression. Also, earnings have not been as good compared to the past few years in the last couple quarters, and are still not planned to grow as fast next quarter. Other countries still have a mountain of goods they could try to dump here. This will lead to a slowdown in the economy including internet companies. Where has all the money gone from Russell 2000 companies? To the internet stocks. It could still take a couple years for internet companies to reach their full perceived value and more, but people will eventually get tired of them and switch back to the Russell 2000.