This is a classic example of irrational exuberance on internet stocks. I feel sorry for those people who bought today because EBAY will settle on the 20's again when all the dusts settle. EBAY offers nothing uniqe that cannot be duplicated by major competitors such as YHOO, AOL, AMZN etc. This baby will definitely go down soon. I have the pleasure of watching this stock move up today and looking at the volume I knew that most people buying are in smaller blocks. The most I saw was 10,000 shares between 3 pm to 4 pm. In addition a lot of nervous shorts also covering.
I've not shorted EBAY before but today I shorted EBAY in 3 increments, first 500 shares @ 42 then 1000 shares at 45 and then another 1500 shares at 45 1/2. Any decent investors would know that EBAY is definitely heading downhill.
Whoever that analyst Ms. Cook projected EBAY @ 50 and noww EBAY is 3 points below 50 what'll EBAY do????? Is she going to initiate another coverage tomorrow saying that EBAY will be @100 because her estimates were "conservative".
I bet some smart long already bailed out and started shoirting this stock like crazy.
Ebay has $63,000,000.00 cash reserve from its IPO. Money that it can use to invest in and/or buy other online auction houses. In addition they can acquire an online server and virtually no overhead. We look at Amazon.com and see that they trade at over $105.00 per share with zero profits. The press release also stated that the earnings estimates for Ebay were extremely conservative. Ebay is projected to have revenues of 450 mil. in 2005. With 3.5 mil shares outstanding and little overhead you are looking at exceptional value. I recall MSFT and DELL when i missed the boat this time,however, on taking the cruise and those that don't will loose.
But think you are wrong! Difference with ebay is they are making money now! Look for a buyout from YHOO or one of the other well capitalized others. Shorry you're short suggest you cover your positions quickly. EOM