Maybe someone can answer a few questions since I don't have a copy of the perspectus. Since the two main guys who started E-Bay own more than half the company and they sold about 30 something million shares at $18, what are they planning to do with those funds? I'm sure advertising and infastructure improvements are on the table, but who else is going to serve on the board. Since Goldman underwrote the auction, are they on the board? Since EBay has entered the largest Auction in the World (NASDAQ), I see that they only show a small amount of earnings. And I also realize that the fundamentals look ridiculous now..but who's left in the internet market that can come out of the box like these guys? I surf the net and saw Geocities go public (who can understand that one), but I feel this stock can't lose in the next four years. Anyone who uses EBay realizes just how addictive and efficient it really is and it can't help making money. Especially if there are 700,000 auctions going on any given day!
Go long on this one...my opinion. What does the rest of the world out there think (or know).
I bought this stock because the Internet is here to stay. Just look at the computer sales numbers which altho they have flattened somewhat with the economic situation, they still continue to rise. More computers, more people on line. Also, think of the big boost in advertsing that EBAY got with it's IPO. A lot of folks haven't heard of EBAY yet and as the word gets out, more are going to stop by for a look. Sure, Yahoo has the free site but it isn't hardly as user friendly or downright fun as EBAY and when it comes to Internet use, it's the guy that got his foot in the door first and made it the easiest to use that will pull the greater market share. Just look at AOL and Prodigy. AOL was easier and altho Prodigy did make some great improvements, people are creatures of habit and will generally stick with what they know and that is also what they will recommend to others. Yahoo may improve but EBAY has the jump. Is the stock overpriced? Sure.... but not after a few splits. Regardless of price per share vs number of shares, 3.5 million shares is just not that many and splits are bound to happen. All, of course, IMHO. Happy Stockin' and good luck to all!