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

To: Gopher Broke who wrote (2419)	3/30/1999 9:59:00 PM
From: J. C. Dithers	Read Replies (1) \| Respond to of 7772

AMZN won't be a problem for EBAY ... After spending some time on the new AMZN site, I predict that AMZN will pose no meaningful threat to EBAY. I am not basing this on substance (products and prices), but on intangibles; the look feel, and ambience of the two sites. AMZN will run a very professional auction site, designing the product mix, orchestrating the way offerings are presented, providing security and guarantees, and using state-of-the-art technology. Transactions may be between individuals, but AMZN's imprimatur will be visible in every aspect of every auction. EBAY is a horse of a different color - casual, quirky, and laid-back. EBAY helps in the search and the matchmaking, but after that keeps a low profile. EBAY exercises very little control over what items are put up for sale, how they are presented, or what takes place between individuals following an auction (which, as we know, creates problems of its own at times). AMZN is a slick, reputable auction house with leather chairs; EBAY is a funky flea market where you wade through junk to find treasures. AMZN is a suit and tie; EBAY is jeans and a tee shirt. I think AMZN will be very successful (I sure hope so, because I am an AMZN shareholder). But I don't believe it will be at the expense of EBAY. These are two very different corporate cultures and two very different markets. I believe there will be very few defections of sellers or buyers from EBAY to AMZN. I'm a long-term believer in EBAY but never a long-term shareholder. I'm out as of this morning (one more of many profitable ins and outs). It's only natural that AMZN's entry will impact EBAY's share price for a short while. EBAY has some other short-term problems. They are losing some eyeballs, and this is showing up in depressed bid levels for some items I bid on regularly. I think there is a little boredom problem showing up here. EBAY needs some news and some innovations to hold up the interest level. I'm confident these will be forthcoming, and I'll be back in then for another run-up. I'm still convinced that EBAY is an Internet thoroughbred for the long pull.