eBay, according to Noto, is "the best positioned e-commerce company," with a "clear leadership position" and the ability to grow without spending a lot of capital.
Noto expects eBay to earn 9 cents per share in the quarter ended June 30th, on revenue of $167 million. In the year-earlier quarter, the company earned 5 cents per share.
eBay was one of the first Internet companies to achieve profitability, and by all accounts, the company continues to lead the market. In a recent report from Nielsen//NetRatings and Harris Interactive, which found that online auction sales soared 149 percent in May to $556 million, eBay accounted for more than 65 percent of overall revenue.
<Noto expects eBay to earn 9 cents per share in the quarter ended June 30th, on revenue of $167 million. In the year-earlier quarter, the company earned 5 cents per share.>
9 cents per share is the consensus estimate for this Q. The present inflated price anticipates more. If 9 cents is all they do, there is going to be a huge sell-off. It's easy to get high growth in the first year of profitability. Also looks good when ypu compare against AMZN or YHOO. But the 50% growth target that Ebay is touting becomes harder to meet in the coming quarters. And this stock is priced for PERFECTION.
The only people that are making money on Ebay are the insiders. If you add up all stock options that Pierre and Meg and others have unloaded, you will find that the total far exceeds the puny income this company has generated.