These businesses are not meant to be managed on a quarterly basis but people take quarterly results and extrapolate them to come up with a long-term value for the stocks. You have to look at them with time horizons of two or three years, not two or three months.
Ebay is really fighting for China but there are two entrenched players there already. So eBay had to invest more in China to compete more aggressively for market share.
Ebay put out good numbers. Wall Street had already priced in a possible miss or even lower guidance going forward but that did not happen. Ebay in fact moderately raised expectations. So that's a good thing.
The international business is really the growth story for eBay, especially as the U.S. market matures. However, there was a significant material decline in revenues overseas in the fourth quarter.
Their growth rate internationally is still above 50 percent.
They're betting on a change in the technology within voice communications.
The search engines have been working on book-copying strategies themselves. This is Amazon showing people it too has a pretty compelling database of book text.
Amazon is really getting hit from both sides. The business environment, especially in the United States, is very, very competitive.
Their growth rate internationally is still above 50 percent. If [eBay is] at 37 times forward earnings and maintaining 30 percent margins, that's a good investment at current valuations.