[CNET] Only 3% of eBay's profits come from operations

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From: Adam Rifkin -4K (adam@XeNT.ics.uci.edu)
Date: Thu Apr 27 2000 - 00:34:06 PDT


The following was snipped from

  http://news.cnet.com/news/0-1007-200-1758264.html

> According to [eBay's quarterly earnings] report, the bulk of eBay's
> revenues came from "interest and other income," rather than from its
> actual operations. eBay's net income from operations was $452,000,
> compared with the $10.4 million the company earned on interest and
> investments.
>
> For the year-ago period, eBay's net income from operations was $7.7
> million, and its income from interest and investments was only $275,000.

This is an increasing trend for dot-com's that actually have cash: make
money from interest collected on cash sitting in the bank. A good chunk
of eBay's and Yahoo's earnings come from "interest and other income".

Or, if you look at Akamai's latest quarterly statement, you'll notice
that *half* their revenues this quarter were interest income earned on
money sitting in the bank they raised from their IPO.

The higher interest rates go, the better these dot-com companies with
cash will do, if this trend continues. Keep raising those interest
rates, Mr. Greenspan, you're letting the cash-rich get cash-richer...

----
Adam@4K-Associates.com

Everybody in Silicon Valley seems to be talking about Charlie, the gourmet cook at Google who used to work for Jerry Garcia. I can tell you, the food is spectacular even by Michelin standards, not just corporate cafeteria standards. Because the food in the company cafeteria is so good, people don't leave work to eat. They eat with their colleagues, which increases learning and communication. They get back to work within half an hour, making them more productive. They feel like Google cares about them, making them more loyal. -- http://joel.editthispage.com/stories/storyReader$75


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