EBAY is a nice little site, based upon a cgi script. That's all it is. It has little tangible resources.
Ebay has a market cap of about 6 billion $6,000,000,000 40 million shares times $.17 earings $6,800,000 earings per year 882 years to earn back the market cap. As EBAY grows, it will be using more bandwidth, which costs a lot of money. Cgi scirpts, which is basically what EBAY is, especially bogs down the server. With the above information, this stock would seem to be an obvious short. However, idiots who know nothing about running a large website buy this stock, and it goes up. It has become a self fullfilling market. I know this stock will go up, but I won't buy it in fear of it going down, and then I'll be hitting myself in the head because I know it so overpriced. It will probably take years for everyone to figure out that most of these web site stocks won't turn out to anything.
It currently has a PE of 882. C'mon people. That's not too bad.
Lets be nice and give them a PE of 100. That means they only need to earn an additional $1.43 a share in fiscal 99. At 3.5% profit margin, that's only $1.6 billion in revenue. That's not a far cry from their current sales of $40 million right?