It's tough to make an investment decision in front of litigation.
I would expect this sell-off to continue tomorrow. It will be an interesting day in the Internet sector tomorrow. I can guarantee you that.
The numbers, honestly, are at times unfathomable for us.
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.
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 is a company that understands network effects better than any other, ... Its core business, as well as (online payment system) Pay Pal, have been created and have succeeded by this network effect ? as more users come in, the marketplace grows in value.
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.
Right now we're seeing the costs. We don't know what the new products will be.
The macro environment is affecting technology. You've gone from where people were overly optimistic about tech to where people are looking for change.
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.
