Trends are not as bad you think! We recommend buying the stock trading at 18.5 times 2006 EBIDTA.

It is important to keep in mind that typically eBay's initial next year's guidance is extremely conservative. In fact, over the past 4 years, eBay has outperformed its original next year's revenue and earnings-per-share guidance by 13% and 23%, respectively.

We believe eBay continues to represent the best business model within the internet sector, as it remains relatively insulated from the heightened competition within e-commerce.

Our survey results reinforce our outlook for a continued slowdown in e-commerce sales. At this early juncture of the holiday season, consumers are not shifting a significant share of spending online from offline.

We believe the lower top-line growth in Q4' 00 versus expectations and uncertainty over Amazon's top-line growth going forward will overshadow the operational achievements that we felt were necessary to achieve operating profitability by Q4 ' 01 and subsequently could have driven stock price appreciation.

We believe the lower top-line growth in Q4' 00 versus expectations and uncertainty over Amazon's top-line growth going forward will overshadow the operational achievements that we felt were necessary to achieve operating profitability by Q4 ' 01 and subsequently could have driven stock price appreciation,