Despite strong stock EBay faces tough issues
At the moment, Wall Street says eBay, the online auction giant, is worth more than Boeing. Or Sears. But McDonald’s.Is this a last gasp of the dot-com craziness of the late 1990s, or does eBay’s potential truly outweigh all the obstacles _ the fraud, the competition, the legal and technological challenges _ that it is facing?
Some say eBay’s $ 101.92 stock price is justified by its dominance of the online-auction field, a dominance that routinely surprises its investors in a good way.
Last year, the San Jose, Calif.., Company made $ 250 million on revenue of $ 1.2 billion, and it projects that that revenue will grow to $ 3 billion in 2005. It makes money primarily by taking a small chunk of every transaction between the millions of buyers and sellers who use the site to find bargains or get rid of stuff every month _ from old, inexpensive junk to high-priced goods such as cars and houses. Big companies _ International Business Machines Corp.. and Home Depot Inc.. _ Also use the site to dispose of inventory.
“EBay’s performance is better than any Internet company I’m aware of, and better than any large-cap company I’m aware of,” said Thomas Underwood, an analyst at financial services firm Legg Mason Wood Walker Inc.. “It’s a very, very good company.”
EBay says it has 31 million active, registered buyers and sellers.
Yet several issues hang over the company. Accounts of online-auction fraud are growing. It recently lost (and plans to appeal) a $ 35 million patent-infringement judgement. And competition on the eBay site itself, as well as from other sites, could lead to problems down the road.
“There are various things lurking in the background,” said David Kathman, an analyst at Morningstar Inc., The mutual-fund research company in Chicago.
Related Articles
An example particularly tasty for inflation hidden
I wonder if the statistics in engineering from the U.S. Bureau of Labor Statistics include "Anti-improvements" in its calculations of inflation. Your preference for "hedonistische price formation" - the adaptation of inflation figures down due to improvements in products (spez. computer) has, of course, since well documented. But what about
The Philadelphia Inquirer Consumer Watch column
If you have seen an increase in fake e-mails on the right of companies like Citibank or eBay and ask you click on "Submit" your account information, you probably will not have to imagine.These frauds Slick, known as "phishing" troll, because they allow access to your bank account or credit
Identity fraud complaints triple room past six months
Demand, answered by the Federal Trade Commission's Identity Theft line has tripled in the last six months after the FTC testimony before the Senate Judiciary Committee Subcommittee on Technology, Terrorism and Government Information. Jeffrey Klurfeld, director of Western Regional Office of the FTC, said an area of consultation with the
Lawyer leading effort to honor Justice Eagen
Members of the legal profession no doubt recognize the name of Michael J. Eagen. Mr. Eagen of the Supreme Court of Pennsylvania for 20 years - three as Chief Justice. Local lawyer David Rinaldi has Lackawanna County commissioners to consider, Mr. Eagen the name of citizens Distinguished Lackawanna County Court House Square
Bankruptcy of Canadian Parent Company
The Canadian-based parent of Glenshaw Glass Co. has obtained protection from its creditors while it attempts to restructure, but said operations at its Glenshaw plant as well as a plant it owns in Fayette County were not affected by its financial troubles.
Welcome to the era of Global pillory
Better out better than good. Or you're at the end to the world pilloried. Up with Madelyne Toogood, the mother caught on videotape on September 13 in Mishawaka, Ind. terminal, their child. The video plays on endless loop this week on local stations and networks Fox and CNN throughout the
Auto Sales top survey of consumer complaints
Complaints relating to car sales, Home Improvements, and automobile repair, while high on the list of deception of consumers to a new survey, but costs, the Internet are part of the fastest growing.The National Association of Consumer Agency Administrators "and" Consumer Federation of America, said Tuesday a survey of 42
On the patching Region still care more habitable
The Tell-tale sign that this Deffner Mary's home, flour Christmas cookie poured into his purple pullover. It could also look at the grandmotherly it gives children dance in front of him or behind the cage slippers their reputation.The 73 years of Beaconsfield Ridge home care do not live in the
Justice Is Just an Emotional Feeling
If the 2 August 1995, the defense is trying to convene officers of the Courts of Pennsylvania, and the jury commissioner of the Philadelphia area as part of their petition CARP argument that the jury pools was not fired from a fair cross section of the town, "the silence Sabo
Parents organize the fight to reform federal laws child custody
John Cihon lost custody of 6 years, Andrew, as he and his wife divorced. Now, father and son spend two weekends per month and try to lecture on the phone almost every day. "I hate," says Cihon of limiting contact. "He asks me all the time," When do I come? When