posted on September 20, 2000 02:11:58 PM new
EBay closed at 76 9/16, 52 week high = $127.50, 52 week low = $43.50
Excerpted from the PR Newswire:
eBay Inc. Outlines Global Business Strategy
PR Newswire, Wednesday, September 20, 2000 at 12:01
SAN JOSE, Calif., Sept. 20 /PRNewswire/ -- eBay Inc. (NASDAQ:EBAY) (www.ebay.com), the world's largest online trading community, today held its annual financial analyst meeting, during which the company reviewed its strategy for sustained growth over the next five years. At the meeting, eBay announced a revenue goal of $3 billion in 2005, implying revenue growth rates approaching 50 percent per year. In addition, company executives underscored significant areas of growth, both domestically and abroad, and highlighted a new developers program.
"We are excited about eBay's long-term vision," said Meg Whitman, eBay's president and CEO. "We intend to accomplish our long-term revenue objectives while maintaining profitability as a cornerstone of our strategy."
eBay's 2005 revenue goal is based on its estimate of the size of its addressable markets, which include collectibles, practical items, computers, used autos and parts, and the continued strength of its proven global business model. eBay estimates its current potential addressable markets at about $1.6 trillion, increasing to about $2 trillion by 2005.
"eBay is uniquely positioned to capitalize on an enormous market opportunity," said Brian Swette, eBay's COO. "We have an exciting, globally-recognized brand, a solid technology platform and an organization committed to our users' success."
During the meeting eBay executives restated the company's ongoing commitment to profitability and returns-based investment. The company reiterated its goal of achieving its long-term financial model, including gross margins in the mid 80 percent range and operating margins of 30 to 35 percent before 2005.
Sources of Revenue Growth -- Domestic
eBay executives outlined plans for growing the business in all categories. Jeff Jordan, senior vice president for eBay U.S. said. "With eBay's current share of the collectibles market at approximately 2 percent and its share of the practicals market at about 1 percent across all categories, we see tremendous opportunity to extend the platform."
eBay executives also discussed Half.com, the fixed price person-to-person e-commerce site acquired by eBay in July 2000. The company described Half.com as its first example of a move beyond its auction-style format to a fixed price format.
Sources of Revenue Growth -- International
eBay reviewed its position in five overseas markets: Australia, Canada, Germany, Japan, and the U.K. The company believes that it is the leading trading platform in four of those markets -- Australia, Canada, Germany and the U.K. Based on its estimates of GMS for September 2000, eBay is at least twice as large as its nearest competitors in Germany, Canada, Australia and the U.K.
eBay announced that it expects to be in 10 countries by year-end 2001 and 25 countries by year-end 2005, representing the majority of online users and e-commerce revenues outside the U.S.
Technology
Maynard Webb, president of eBay technologies, reviewed site operations, highlighting eBay's ability to deal with growing global demand while scaling up to handle new services and opportunities. In addition, the company announced plans to introduce a developers program designed to provide third party developers with an open and standardized means to access eBay. The program is currently in beta testing and will be rolled out starting in Q4 2000.
About eBay
eBay is the world's largest online trading community. Founded in 1995, eBay created a powerful marketplace for the sale of goods and services by a passionate community of individuals and small businesses. On any given day, there are millions of items listed on the site across thousands of categories. eBay has regional sites in more than 50 markets across the United States, and country specific sites in the world's top five Internet markets, including Canada, the United Kingdom, Germany, Japan and Australia. With the acquisition in 2000 of Half.com, eBay's community now benefits from a marketplace combining traditional auction-style trading and set-price trading.
About Half.com
Half.com offers people an organized online marketplace to buy and sell high quality, previously owned goods for at least half off list price. Founded in 1999, Half.com has quickly become the premier site for fixed price person-to-person e-commerce.
Forward Looking Statement
This announcement contains forward-looking statements that involve risks and uncertainties. Actual results could differ materially from the discussed. Factors that could cause or contribute to such differences include, but are not limited to, the adoption rate of online commerce in the U.S. and internationally, the level of consumer acceptance of the eBay platform across new products and in new countries, managerial execution, particularly management of growth, legal issues involving the sale of illegal, pirated, fraudulent, or regulated products on the Company's websites, legal, cultural and operational issues associated with operating internationally, issues associated with the integration and operation of past and potential future acquisitions. More information about potential factors which could affect eBay's business and financial results is included in eBay's 10-K for the year ended December 31, 1999 and its 10-Qs for the periods ended March 31, 2000 and June 30, 2000 under the headings "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results Operations" and under the heading "Risk Factors" in its Registration Statement on Form S-3 filed September 19, 2000. All forward-looking statements are based on information available to eBay on the date hereof, and neither company assumes any obligation to update such statements.
SOURCE eBay Inc.
From the Dow Jones Newswire:
Ebay Targets $3 Billion in Revenue for 2005
Dow Jones Online News, Wednesday, September 20, 2000 at 13:48
SAN JOSE -(Dow Jones)- Online auctioneer eBay Inc. said it expects to have $3 billion in revenue in 2005 as it works to extend its reach both in the U.S. and abroad.
EBay (EBAY) said the revenue target implies revenue growth rates approaching 50% a year. The goal is based on the company's estimate of the size of its addressable markets, which include collectibles, practical items, computers, used autos and parts.
EBay reiterated its goal of achieving gross profit margins in the mid-80% range and operating margins of 30% to 35% before 2005.
The company said it sees "tremendous" opportunity to extend its trading platform, citing its current share of the collectibles market at about 2% and its share of the practicals market at about 1% across all categories.
EBay said it expects to be in 10 countries by year-end 2001, and in 25 countries by year-end 2005, representing the majority of online users and electronic-commerce revenue outside of the U.S.
The company, which operates in five overseas markets - Australia, Canada, Germany, Japan, and the United Kingdom - has reviewed its position in those countries and believes it is the leading trading platform in four of those markets: Australia, Canada, Germany and the U.K.
Ebay reported its most recent quarterly results back in late July, posting second-quarter revenue of $97.4 million, almost double year-earlier revenue of $49.5 million. The company also reported a better-than-expected profit for the quarter. Analysts said at the time that the company was continuing to prove the merits of its business model while many online businesses are struggling.
EBay's second-quarter gross profit margin was 76%, compared with 73% in the first quarter, and 77% in the year-earlier second quarter. Online net revenue rose to $87.9 million from $38.2 million in the year-earlier quarter. The company also generated $28.3 million in cash from operations during the second quarter, which increased its total cash and financial investments to $839 million.
Meanwhile, Tuesday, eBay also said it plans to introduce a developers program aimed at providing third-party developers with an open and standardized means to access eBay. The program is in beta testing and will be rolled out starting in the fourth quarter.
(Compiled from Dow Jones Newswires and other sources)
Excerpted from the Charles Schwab Analyst Summary:
Price to Sales Ratio - EBAY 81.8x Comparable Industry 16.3x
Profit Margin - EBAY 4.8% Comparable Industry 21.9%
Return on Equity - EBAY 2.6% Comparable Industry 39.7%
Return on Assets - EBAY 1.1% Comparable Industry 17.3%
posted on September 20, 2000 03:37:02 PM new
This sort of assumes that the various countries of the world will get their act together an make e-commerce and online access
acvailable despite monopolies that don't want it. In Japan people just do not as a great mass use credit cards. They use cash. And unlimited online access is still 3 or 4 times the US plus there are per minute charges for all phones. Some countries you can't even get a reliable voice phone. My nephew recently went to oversee installing a data network for an auto plant in Russia and there was nowhere in this huge (48 sq.km.)industrial complex he could call his boss back in the US. He flew back to London and bought a satellite phone in order to be able to work there. They have a long way to go.
posted on September 20, 2000 06:43:47 PM newEBay's Shares Rise 16.5 Percent
"NEW YORK (AP)- EBay Inc.'s shares soared 16.5 percent Wednesday on the Nasdaq Stock Market after the online auction company announced that it projects $3 billion in sales in 2005."
posted on September 21, 2000 08:12:57 PM new
14 year old kid makes the news for "fraud" by touting stocks he has bought low and sold high, he's fined thousands of dollars...
But Meg Whitman can tout ebay stock with a lot of BS and it goes up and no one gives a sh!t...
posted on September 22, 2000 08:52:02 AM new
ZZxyz00: I didn't read anywhere that either Meg or Pierre did any significant selling, but early this week Pierre was pictured as making the most money on that day, and then on the day of the announcement Whitman's photo was shown as the CEO earning the most in the stock market that day.
Insider selling is PUBLIC knowledge, available at stock sites, and places like edgar online.
posted on September 22, 2000 08:57:48 AM new
Capotasto: I do NOT believe that the announcement that eBay made at their analysts' meeting was an OVERSTATEMENT, and I will not be surprised in a couple years to read all about financial analysts shaking their heads and wondering why eBay exceeded these projections, in record time.
The journalists and analysts still have difficulty deciphering what eBay is, and are still referring to it as a global garage sale or big online flea market.
eBay Management is well recognized for NOT making statements of the kind you depict; indeed there are articles online alledging that eBay Management seems congenitally unable to make the HYPED-up misleading announcements we are so familiar with, stemming from other areas of cybercommerce.
