Friday, December 1, 2006

eBay and Amazon Battle It Out: A Recap

Ebay and Amazon are two of the fiercest e-commerce companies out there. But which one has shown more strength lately? In this recap, we'll compare the most recent quarter's numbers to see what we can learn.

These two giants obviously have different business models, so this is more of a fun exercise -- but it's also informative. eBay was a leader in sales and earnings growth, but Amazon was better at using its leverage and keeping margins fairly flat. Does this mean Amazon is the better competitor? Not necessarily. For starters, eBay's acquisition of Skype helped drive its strong sales growth but also caused its operating margins to plummet. While PayPal's growth was stronger than the auction business, eBay's Skype will hopefully be monetized in the near future. As we speak, Skype Me buttons are being tested in eBay auctions in markets all over the world.

Read more http://www.fool.com/News/mft/2006/mft06112921.htm

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