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 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.
We found Amazon results to be mixed and we believe the shares could be weak through the spring/summer months.
Their growth rate internationally is still above 50 percent,
This new contract for five years is a positive indication that the GDS business, while mature, is taking positive steps to ensure its longevity. We view the deal positively and believe that other carriers may follow suit.
They're betting on a change in the technology within voice communications,
I don't think it will drive that much traffic. Why would a consumer go to Amazon to sign up with Fidelity? It sounds interesting but why? What's the value proposition?
Right now we're seeing the costs. We don't know what the new products will be.
It's tough to make an investment decision in front of litigation.
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.
