Is Amazon.com too expensive, or is there more to come? I suppose Amazon has a much bigger market opportunity (retail shifting online) than eBay (auctions must be much closer to maturing). However:
- 1. Both show continued growth. Is the acceleration at Amazon going to last?
2. The same goes for their core revenue (Media at Amazon, Marketplaces at eBay).
- 3. Margins at eBay are much fatter, but Amazon is showing a lot of growth. Where are Amazon's margins headed?
4. On most metrics, Amazon is about twice as expensive. How does that compare to growth?
I think the valuation differential is a little stretched, but I do believe Amazon.com demands a premium.