[the 'stache]

Originally Posted by Peter_Spaeth

Of 41 analysts who follow ebay not one rates it a sell or an underperform. But I guess Bill knows stuff they don't.

Nope, Peter. You got me. Ebay is profitable right now, absolutely. And that may continue for some time. However, the number of complaints stemming from how Ebay treats their sellers are growing, and if Ebay doesn't take steps to placate these users, then the company will experience problems. And somebody out there is going to create a viable alternative to Ebay that will cut into its market share. That's guaranteed. It happens in every business model. Ask RIMM about how their market share has fallen off a cliff. Ask somebody who worked in research and development for Palm, Inc. Ask somebody who works for Microsoft in internet browser development about the good ol' days, when Internet Explorer reigned supreme, with Netscape Navigator and a select few fighting for the scraps from Microsoft's table.

I'm seeing in Ebay a company that is completely inflexible. They are incapable of responding to very legitimate customer complaints. And as they continue alienating their customers, and word of mouth continues to spread, more and more people will leave them behind. And they will fall flat on their faces. It may not happen this year, or in three years, or five. But it will happen.

People working for Enron, and Bear Stearns, and Lehman Brothers, and AIG, never thought their companies would collapse. But they did. Ebay had better be very careful, regardless of whatever these analysts are saying.