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.

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.

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.

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

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,