Mid-Atlantic Institutional Research

eBay (OTC: eBay - $13.28)

Initiating Coverage: Weakness expected, waiting for recovery January 22, 2009

Brian Bolan
Long Term Rating: Market Perform (312) 345-1534
BBolan@sturdivant-co.com
Long Term Target Price: $13

Investment Summary: Our view of eBay is founded on a few key factors. First we believe that the Share Information
Payments platform is stronger than the Marketplaces platform and should hold up better during this Price 1/22 $13.28
macro economic downturn. The Marketplaces segment will continue to see negative sequential 52 Wk Hi $33.47
growth through the end of 3Q09, turning positive in 4Q09. Finally, the communications segment 52 Wk Lo $12.55
should continue its global growth despite the challenging economic environment. Avg. Volume 13.8M
Insiders Own 15.4%
Pressure on margins over the last few years has pushed eBay to record lows. Despite the low valua- S&P 500 840.24
tion, we do not see any reason for the stock to trade much higher than its current levels until earn-
ings improve in late 2009. We rate eBay a market perform stock and initiate a price target of $13, Financial Statistics
which is equivalent to 8.8x our 2009 earnings estimate. Equity Mkt. Cap. $16.9B
Ent. Value $12.4B
ROE 18.2%
Key Points
ROA 9.6%
Bk Value /Share 8.37
Weakness in the core marketplaces segment will continue throughout most of 2009. The
weakness in the core marketplaces segment will generally be offset by growth in the payments EPS
and communications segment, but not enough to translate into EPS growth.
EPS P/E

Competition is formidable, but eBay still well positioned. Amazon continues to be the 2006A $1.05 12.6x
main competitor of eBay’s core marketplaces segment and has re-launched a payment com- 2007A $1.53 8.7x
petitor to PayPal. We believe that PayPal is well positioned as is the communications seg- 2008A $1.72 7.7x
ment of the company. 2009E $1.47 9.0x

Difficult macro environment will test management. With traffic trends heading lower as EBITDA
we see fewer consumers having disposable cash available for the type of merchandise that is FCF/ EV/
available on eBay. Management could face pricing pressure from competitors as well as sev- EBITDA EBITDA
eral calls for a general re-organization in the core Marketplaces segment. 2006A $1.4B 6.2x
2007A $2.6B 4.7x
Earnings expectations are lower for 2009. We estimate net revenues to be lower in 2009, 2008A $2.9B 8.3x
something that growth investors would not want to see. The downturn in revenue will trans-
2009E $2.9B 8.3x
late into a decrease in EPS despite cost controls that will help margins. We rate the stock a
Market Perform and have price target of $13, which represents a multiple of 8.8x our 2009 Relative Price Graph
earnings estimate.

Source: Company
Reports and Sturdivant & Co. Estimates.

Important disclosures appear on the inside cover and back of this publication.
STURDIVANT & CO., INC.

STOCK PRICE PERFORMANCE

Rating and Price Target History for eBay (eBay)

1/22/09
MP: $13.28
T: $13

EBAY Daily 1/22/09

Source: BigCharts MP: Market Perform; T: Target

Mr. Bolan does not own shares of eBay

Disclosures
Rating System Definitions
Sturdivant & Co.’s stock ratings system reflects the investment decisions our clients face every day, and is meant to assist clients in making these decisions by recommending a
specific action to take with each stock we cover. All of the ratings correspond to a specific investment action that we recommend taking on the date the research is published. Thus,
“Outperform” (equivalent to “Buy”) ratings are reserved only for stocks that we would be actively buying at the time the research is published. “Marketperform” (equivalent to
“Hold”) ratings are reserved for stocks that we believe are in line with the market’s anticipated performance and we recommend holding. “Underperform” (equivalent to “Sell”)
ratings are assigned to stocks where the analyst anticipates stock price declines relative to the market. Please note also that the price expectations that determine the rating are in
absolute dollar terms, not in terms of relative performance to a sector or an index. Therefore, analysts will not use the “Outperform” rating for stocks that are expected to perform
well relative to their sector but only for stocks that are expected to appreciate in actual dollar returns.
Research Analyst Compensation
Analyst compensation is based on: (1) the analyst’s productivity, including the quality of the analyst’s research and the analyst’s contribution to the growth and development of our
overall research effort; (2) ratings and direct feedback from our investing clients, our sales force and from independent rating services. Sturdivant & Co.’s Compliance and Re-
search Departments are responsible for establishing these compensation guidelines and for reviewing and approving senior analyst compensation. Analyst contribution to our
investment banking business is not a factor in determining analyst compensation and compensation is not, directly or indirectly, related to the specific recommendations or views
expressed in the report.
Research Analyst Certification
The senior research analyst(s) certifies that the views expressed in this research report and/or financial model accurately reflect such senior analyst's personal views about the
subject securities or issuers and that no part of his or her compensation was, is, or will be directly or indirectly related to the specific recommendations or views contained in the
research report. Mr. Bolan does not own shares of eBay. This is not a complete analysis of every material fact regarding any company, industry or security. The opinions ex-
pressed here reflect our judgment at this date and are subject to change. The information has been obtained from sources we consider to be reliable, but we cannot guarantee the
accuracy. The Dow Jones Industrial Average, S&P 500, S&P 400 and Russell 2000 are examples of unmanaged common stock indices used to measure and report performance of
various sectors of the stock market; direct investment in indices is not available. A complete listing of all companies covered by Sturdivant & Co., Inc. and applicable research
disclosures can be obtained from the Company.
Price Target Risks
Investment risks associated with the achievement of the price target include, but are not limited to, the company’s failure to achieve our earnings and revenue estimates, unforeseen
macroeconomic and/or industry events that adversely impact demand for the company’s products or services, product obsolescence, changes in investor sentiment regarding the
specific company or industry, intense and rapidly changing competitive pressures, the continuing development of industry standards, the company’s ability to compete for talent,
and adverse market conditions. For a complete discussion of the risk factors that could affect the market price of the company’s shares, refer to the most recent form 10-Q or 10-K
that the company has filed with the SEC.

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Table of Contents
Introduction to eBay 4

Industry Outlook 4

Competitive Landscape 5

Risks 6

Management 7

Earnings Analysis 7

Valuation 8

Segment Analysis 8

Cash and Liquidity 9

Conclusion 9

4Q08 Income Statement Review 10

eBay Comparable Companies 11

Marketplaces Segment Analysis 12

Payments Segment Analysis 13

Communications Segment Analysis 14

Income Statement 15

Statement of Cash Flows 16

Balance Sheet 17

Capital Structure 18

Institutional Contacts 19

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Introduction to eBay

Founded in 1995, eBay and its subsidiaries provide online Marketplaces for the sale of goods and services, an
online Payments platform and an online Communications platform. Along with its three major segments,
(Marketplaces, Payments and Communications) eBay also operates marketing sites such as Rent.com,
Shopping.com, Stumbleupon.com and several classified sites.

eBay’s primary online marketplace is its auction site which, during of 3Q08, had 85.7 million active registered
users and over 700 million new listings. The products and services sold via eBay fill the entire spectrum of the
global economy. Auctions can be formatted in the traditional sense or with a fixed price. The fixed price auctions
contain a “buy it now” button which ends the auction at time of sale. The site also features Dutch auctions and
several bidding and listings tools for both buyers and sellers.

PayPal is the major portion of the Payments platform that also include BillMeLater.com. During 3Q08, the
payments segment of eBay had 65.3 million active registered accounts that enacted 214.5 million transactions that
exchanged approximately $14.8 billion dollars. PayPal has become the de facto standard for online payments
despite being it what is quickly becoming a crowded field.

eBay’s Communications segment is based around Skype, a Voice over internet protocol (VoIP) application that
allows users to place computer-to-computer calls as well as computer-to-cellular calls and computer-to-land line
calls. Video conference and chat tools are some of the features of Skype which, at the end of the 3Q08, had 370
million users.

eBay also runs several other sites that make up its marketing services revenue. These sites include the previously
mentioned Rent.com and Stumbleupon.com as well as Shopping.com and StubHub.com. eBay also operates
classified sites such as Kijiji.com. Marketing services account for nearly $1B of the $8.5B in annual revenues.

Industry Outlook

When looking at the industry for eBay, one must look at the four separate segments and their respective outlooks.
The marketing services segment touches the three major components of the company, but can be broken out
through the financial statements. Marketing services by itself relies heavily on advertising and fees for its
classified style websites. The macro environment has proven difficult for any business that relies on advertising as
budgets have been cut significantly.

The Marketplace segment, or the core

business of eBay is facing significant
challenges. Historically, eBay faced an
80/20 problem in that 80% of its traffic
were buyers, while only 20% of its visitors
were fee generating sellers. Its main
competitor, Amazon, has focused on the
buyers and lower prices. To further
compound problems, during 2007 eBay
instituted rate increases for sellers, which
caused many sellers to increase shipping
fees.

eBay slashed listing fees on 2/12/08 in an

effort to stem declining traffic, but the
traffic trends have not suggested that a
turnaround is near. Another concession Source: Alexa.com

initiated by eBay for multiple listings was also ineffective. Alexa.com reach data shows that Amazon (AMZN:
MU) has closed the gap in terms of traffic. Besides Amazon, competition also comes from sites like
Overstock.com (OSTK) and niche auction sites such as GothAuctions.com.

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The alternative payment industry has seen significant growth over the past several years. PayPal has become a
leader in the industry thanks to its broad adoption and early penetration of eBay customers. Despite the near term
negative outlook for the macro environment, we believe that alternative based payments will continue to grow.
Several well funded companies have launched competing services such as Checkout from Google and Amazon
Payments from Amazon. Numerous start-ups have also sprung up, notably Revolution Money which was founded
by Steve Case (founder of AOL).

While the success PayPal historically depended on the volume of merchandise traded via eBay, recent efforts to
expand beyond the auction market have insulated the division from the slowdown in auctions. Still highly
influenced by the traffic and gross merchandise value traded at eBay, PayPal looks to maintain vigorous growth
over the next several quarters.

In the coming year, we anticipate more of a focus on the mobile payment platform. In the same manner that
numerous applications have been developed for the iPhone or smartphones, we expect PayPal to develop
something similar for mobile payments.

In the Communications segment, the competition is simply vast. With over 370 million registered users, we
believe Skype is on the verge of an explosive growth in usage. The provider of VoIP services has a built-in base
that dwarfs any cellular carrier but has seen little in the way of revenue. Skype will likely benefit from the near
term weakness in the macro environment in that consumers will look for inexpensive and free services to supplant
services that carry high monthly fees.

Other macro factors that will boost Skype usage include the impending build out of Wi-Max services. Baltimore is
scheduled to launch a service soon, and several US cities will follow throughout the year. The high customer costs
for Wi-Max service will make a portable Skype phone an attractive benefit of the service. The inclusion of Wi-Fi
features on smartphones also points to opportunity for Skype.

Despite the large number of users Skype and many of its VoIP brethren have, failed to monetize subscribers to a
significant degree. We believe 2009 will be more of the same with full scale adoption and increased monetization
still likely to be more than a year away.

Competitive Landscape

eBay competes against a large number of companies in many different sectors. With payments and marketplaces
being more intertwined than communications, there is no perfect comparison. Certain companies fall into multiple
categories, but are focused on areas outside of the marketplaces that eBay is in.

The marketplaces segment faces direct competition from Amazon and Overstock.com. Amazon, with its focus on
being a new product retailer also competes in the used product market that has proven to be a thorn in the side of
eBay. The fixed price model and focus on the buyer has helped Amazon gain market share from eBay. Buyers
may search for a product at both eBay and Amazon, but will know the exact price at the Amazon site. This works
better for more common items, but not as well for more unique items that are better served with an auction.
Selling on Amazon is different from eBay in that large sellers pay a monthly fee, and a referral fee which is a
percentage of the total sale. Some items (books, videos, music and software) also carry a small per item closing
fee. The lack of a listing fee allows for larger inventories to be listed and removes timing risk. In essence,
Amazon offers an “online shelf” and eBay offers a limited sale time. Viewed another way, Amazon sets a defined
profit percentage, while eBay gives the opportunity for significant upside or a potential loss if the item is not sold.

Another competitor in the Marketplaces segment is Overstock.com (OSTK). As a direct competitor they allow
individuals to list items for sale, but more than that they are seen as the preferred platform for liquidators. Most of
the items on Overstock are refurbished or discontinued merchandise which narrows its addressable market. We do
not view Overstock as a significant competitive threat to the business model for eBay. It is, however, competitive
in the area of large scale liquidations (an area that gives some pricing power to the merchandiser rather than the
liquidator).

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PayPal and the Payments platform competes against numerous companies. Amazon Payments is the payment
technology for the e-tailer and technology services provider. Amazon Payments re-launched in July 2008, a signal
that its momentum is improving as traffic continues to trend higher for Amazon. We believe that retailers,
especially large retailers, will balk at this offering as has Toys’R’Us and Borders, who believed that Amazon used
the data they gathered in operating their online stores to better compete with them. This is a fundamental
advantage that PayPal has over Amazon Payments.

Google Checkout is also a direct competitor but has seen little acceptance outside of online companies. Blue Nile
(NILE ) was an early adopter of Google Checkout when a $10 per order subsidy was offered. Since that time, we
have heard little else about Google Checkout.

Any discussion of PayPal’s competitors must address the threat from MasterCard and Visa, the de facto standard
for payments for several decades. We believe that other platforms will continue to eat into the overall market
share of the major credit card companies. There are a number of factors that point to the growth of alternative
payment solutions, the least of which being the recent credit crisis. We believe that the credit card companies are
facing significant pressure from the overall economic environment. We believe PayPal is likely to gain share from
MasterCard and Visa during this economic downturn.

PayPal also faces challenges from startups like Revolution Money, which is back by AOL co-founder, Steve Case.
Although Revolution Money competes more directly with credit cards, it does show the need for alternative
payment solutions beyond MasterCard and Visa.

The Communications platform, which is anchored by Skype, faces competition from numerous companies. With
direct competition coming from any VoIP (Voice over Internet Protocol) provider, Skype competes with Google,
Yahoo, Microsoft, AOL, and Vonage to name a few. Other telecommunications companies like AT&T and
Verizon could also be considered indirect competition. Most instant messenger platforms now allow for voice
communication, so they could be considered direct competition with Skype. What Skype has that many of its
competitors don’t is a massive user base of approximately 370 million registered users.

Risks

We believe that there are some inherent risks that all technology companies face and they include, but are not
limited to, the loss of high caliber human capital and inability to adapt to changes in the business environment.

• eBay also faces other significant risks like increasing competition. Amazon and Google are their main
competitors and they are both well funded and have high quality management teams.

• A pricing war with Amazon and or Overstock could negatively impact earnings, as traffic patterns have
already shown .

• The macro economic slowdown has already had a negative impact on eBay. Should it continue we
believe that consumers will have less disposable funds available for purchasing merchandise on eBay. A
lack of buyers could force sellers to look for other platforms to sell their merchandise.
• eBay continues to face integration risks associated with its acquisition of Skype. If eBay is unsuccessful
in integrating Skype, eBay may fail to realize the projected synergistic benefits of the acquisition. This
could limit eBay’s ability to make future acquisitions..
• The company needs to carefully manage its future changes in pricing, products and policies. The recent
changes to the buyer/seller feedback features also need to be carefully managed.

• Other risks can be found in the 10-K

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Management

John Donahoe became President and CEO of eBay Inc. on March 31, 2008. Mr. Donahoe has global responsibility
for growing each of the company's business units.

Mr. Donahoe started at eBay in February 2005 as President of eBay Marketplaces, responsible for all elements of
eBay's global ecommerce businesses. John also oversaw a number of strategic acquisitions, including
Shopping.com and StubHub, and classifieds sites, such as Gumtree and LoQUo.

Prior to eBay, Mr. Donahoe spent more than 20 years at Bain & Company. Starting as an Associate Consultant,
John rose to become the firm's CEO, where he oversaw Bain's 30 offices and 3,000 employees. Mr. Donahoe is
also on the Board of Trustees of Dartmouth College. He received a Bachelor of Arts in Economics from Dartmouth
College and an MBA from the Stanford Graduate School of Business.

Bob Swan is senior vice president, finance and chief financial officer at eBay and is responsible for all aspects of
eBay’s finance function including controllership, financial planning and analysis, tax, treasury, audit, mergers and
acquisitions, and investor relations.

Prior to joining eBay, Mr. Swan was CFO and executive vice president at Electronic Data Systems Corporation
(EDS). With financial responsibility for a global organization with revenues of more than $20 billion and 117,000
employees, Bob oversaw the controllership, treasury, tax, investor relations, audit, planning, mergers and
acquisitions, supply chain management and corporate administrative functions for EDS. He received a Bachelor of
Science in business administration from The State University of New York (SUNY) at Buffalo. He also received a
Master of Business Administration from SUNY Binghamton.

Earnings Analysis

eBay has a stellar record when it comes to managing Wall Street expectations. Over the last several quarters, eBay
has beaten both the top and bottom lines. We believe the current macro environment will provide significant
challenges to management. Despite a 10% reduction in workforce that ended in 3Q08, we believe that the
company will have trouble beating the consensus estimate by more than a penny per share. Our estimate for 4Q08
is $0.40, one penny higher than the consensus estimate of $0.39.

Estimates vs Actual Estimate Actual Difference Surprise %

SALES(in millions)
Quarter Ending Dec-08 2,107.32 2035.846 -71.47 -3%
Quarter Ending Sep-08 2,123.64 2,117.53 -6.11 0%
Quarter Ending Jun-08 2,163.31 2,195.66 32.35 1%
Quarter Ending Mar-08 2,073.84 2,192.22 118.38 6%
Quarter Ending Dec-07 2,144.76 2,180.61 35.85 2%
Quarter Ending Sep-07 1,829.33 1,889.22 59.89 3%

Earnings (per share)

Quarter Ending Dec-08 0.39 0.41 0.02 5%
Quarter Ending Sep-08 0.41 0.46 0.05 12%
Quarter Ending Jun-08 0.41 0.43 0.02 5%
Quarter Ending Mar-08 0.39 0.42 0.03 8%
Quarter Ending Dec-07 0.41 0.45 0.04 10%
Quarter Ending Sep-07 0.33 0.41 0.08 24%
Source: eBay company reports, Sturdivant & Co. Re-

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Valuation

Valuation of a conglomerate is an inexact science, and while eBay is not a conglomerate it does exhibit some of
the same characteristics. With growth rates turning negative in the Marketplace segment, and Payments &
Communications segments still in significant growth modes, a sum of the parts valuation looks to be the best way
to value the company.
Margin Analysis 2003 2004 2005 2006 2007 2008*
Gross Margin % 80.8% 81.2% 82.0% 78.9% 77.0% 75.2%
SG&A Margin % 41.6% 39.5% 40.3% 43.5% 40.2% 38.5%
EBITDA Margin % 36.4% 40.1% 40.0% 33.1% 34.0% 33.7%
EBITA Margin % 31.5% 34.5% 34.7% 27.7% 29.1% 28.8%
EBIT Margin % 29.1% 32.4% 31.7% 24.0% 26.1% 25.9%
Earnings from Cont. Ops Margin % 20.7% 23.8% 23.8% 18.9% 4.5% 22.4%
Net Income Margin % 20.4% 23.8% 23.8% 18.9% 4.5% 22.4%
Normalized Net Income Margin % 19.1% 21.6% 21.3% 16.3% 17.4% 17.1%
Levered Free Cash Flow Margin % 13.4% 14.1% 27.8% 21.5% 16.9% 13.0%
Unlevered Free Cash Flow Margin % 13.6% 14.2% 27.8% 21.6% 17.0% 13.1%
* Last 12 months Source: eBay company reports, Sturdivant & Co. Research

We recognize that while the core Marketplace segment has seen less growth, it is still an essential piece to the
overall puzzle. PayPal still draws a significant amount of business from the eBay Marketplaces. Thus, a divesture
would not be beneficial to the company or shareholders. The cross-use of PayPal and the core eBay Marketplaces
has been steadily improving and integration of accounts remains a priority. The same cross-use of Skype and
PayPal was a primary factor in eBay’s decision to buy the Communications hub. That said, the full integration of
all three applications has not been as successful to date.

Over the last several years, margins have declined. This decline has taken its toll on its multiples, namely its price
to earnings multiple. As the chart show, the average P/E multiple has been dropping along with the company’s
margins. We believe that this trend is at an end due mainly to the steady earnings that the company will report in
2008-2009.

2002 2003 2004 2005 2006 2007 2008

P/ LTM Normalized EPS 120.46x 101.01x 107.35x 70.03x 49.37x 43.61x 23.97x
Source: Capital IQ, Sturdivant & Co Research

We believe that a multiple of 8.3x 2009 earnings is where the market will keep eBay until there is a significant
change in the trend for margins. Margin expansion will undoubtedly lead to multiple expansion seeing as the stock
has been trading near its all time lows.
Segment Analysis

The macro environment has exacerbated the difficulties of the Marketplaces division. We estimate that revenues
from the Marketplaces division will drop sequentially through 3Q09. A rebound of the economy in the second half
of the of 2009 may not be seen in the Marketplaces division until late the third quarter. We do, however, anticipate
a strong 4Q09.

We believe the Payments segment will see a shorter downturn than the Marketplaces segment. 3Q08 saw a 1%
sequential decline in revenue, and accordingly, we expect this trend to stretch through 1Q09. Our estimates call
for a faster rebound for the Payments segment, with minimal growth anticipated in 2Q09 and more robust growth
in the second half of the year.

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% of Revenue 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 E 1Q09 E 2Q09 E 3Q09 E 4Q09 E
Marketplaces 61.2% 58.7% 57.8% 56.2% 55.0% 54.4% 53.6% 52.9% 51.6% 51.3%
Payments 23.7% 24.7% 25.5% 26.4% 27.2% 27.8% 27.9% 28.1% 28.5% 28.9%
Communications 5.0% 5.1% 5.5% 5.9% 6.5% 7.0% 7.6% 8.1% 8.5% 8.1%
Marketing 10.1% 11.5% 11.2% 11.5% 11.3% 10.9% 10.9% 11.0% 11.4% 11.6%
Source: eBay company reports, Sturdivant & Co. Research

Communications has been immune to the revenue downturns that the two other segments have experienced. Due
in part to its small relative size, its small growth rate is anticipated to continue unabated. This growth amidst the
downturn prove the importance of the Skype to the company. That said, growth from this segment needs to reach
double digits in 2010.

Cash and Liquidity

eBay ended 2008 with $3.2B in cash and equivalents, and $1B in borrowings from its credit facility. The increase
in debt is due to the financing of the BillMeLater acquisition which was completed in the quarter. Due to the
acquisition, the company halted all stock repurchases in the quarter. We expect the company to continue its
repurchase of stock following the restricted period after an earnings announcement.

The company generated $684M of operating cash flow and $525M in free cash flow in 4Q08. For the full year,
operating cash flow was $2.88B and free cash flow came in a $2.32B.

Conclusion

Our view of eBay is founded on a few key factors. First we believe that the Payments platform is stronger than the
Marketplaces platform and should hold up better during this macro economic downturn. The Marketplaces
segment will continue to see negative sequential growth through the end of 3Q09, turning positive in 4Q09.
Finally, the communications segment should continue its global growth despite the challenging economic
environment.

Pressure on margins over the last few years has pushed eBay to record lows. Despite the low valuation, we do not
see any reason for the stock to trade much higher than its current levels until earnings improve in late 2009. We
rate eBay a market perform stock and initiate a price target of $13, which is equivalent to 8.8x our 2009 earnings
estimate.

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eBay 4Q08 Income Statement Review

Sequenential Year over Year Delta from

4Q07A 3Q08 4Q08 4Q08A growth growth estimate
Net Revenues 2180.606 2,117.522 2,032.979 2,035.846 -3.9% -6.6% 0.1%
Cost of Revenues 505.973 560.963 548.904 579.591 3.3% 14.5% 5.6%
Gross Profit 1,674.633 1,556.559 1,484.075 1,456.255 -6.4% -13.0% -1.9%
76.8% 73.5% 73.0% 71.5% -2.7% -6.9% -2.0%
Operating Expenses
Sales and Marketing 506.524 457.216 451.321 418.316 -8.5% -17.4% -7.3%
Product Development 169.316 190.842 171.787 171.207 -10.3% 1.1% -0.3%
General & Admin 235.928 331.715 325.277 205.08 -38.2% -13.1% -37.0%
Amort of Intangible assets 53.313 52.72 51.028 72.444 37.4% 35.9% 42.0%
Provision for transactions & loan Losses 83.412 0 0.000 86.571
Stock based Comp 69.653 90.251 81.319 82.561 -8.5% 18.5% 1.5%
Total Operating Expenses 1,048.493 1,032.493 999.412 953.618 -7.6% -9.0% -4.6%

Income (loss) from operations 626.14 524.066 484.662 502.64 -4.1% -19.7% 3.7%
Interest and other income 51.921 38.556 25.000 24.368 -36.8% -53.1% -2.5%
Intererst Expense -6.596 0.01 (1.00) -4.563 -41581.8% -30.8% 356.3%

Income before taxes 671.47 562.633 508.662 522.44 -7.1% -22.2% 2.7%
Provision for income taxes 140.579 70.423 97.875 106.076 50.6% -24.5% 8.4%
20.9% 12.5% 19.2% 20.3% 62.2% -3.0% 5.5%
Net Income 530.89 492.21 410.787 416.37 -15.4% -21.6% 1.4%

Proforma Net Income 615.122 593.8 507.753 523.768 -11.8% -14.9% 3.2%

EPS $ 0.45 $ 0.46 $ 0.40 $ 0.41 -10.9% -9.3% 2.1%

Share Outstanding 1,368.067 1,297.484 1,271.534 1,284.279 -1.0% -6.1% 1.0%

Source: eBay company reports, Sturdivant & Co. Research

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eBay Comparable Companies

Trading Multiples Operating Stats (%) Returns (%)

Stock Price Revenue Market Enterprise TEV/Rev TEV/EBITDA P/E Gross Margin EBIT EBITDA Net Inc ROA ROE ROIC
Ticker Company Name 1/21/09 LTM Cap Value LTM LTM LTM LTM LTM LTM LTM LTM LTM LTM
amzn Amazon.com Inc. 50.54 18,135.0 21,673.2 19,784.2 1.1x 18.9x 34.7x 22.6 4.3 5.8 3.5 8.8 38.1 19.7
ostk Overstock.com Inc. 9.33 873.0 212.2 208.2 0.2x 167.5x NM 16.7 (2.7) 0.1 (2.3) -9.0 -148.6 -16.9
goog Google Inc. 303.08 20,921.3 95,395.7 80,983.1 3.9x 10.6x 18.3x 59.9 29.7 36.4 24.1 14.4 20.8 16.0
yhoo Yahoo! Inc. 11.59 7,234.1 16,083.6 12,947.8 1.8x 6.9x 17.6x 58.6 7.1 17.9 12.9 2.5 8.9 3.0
vg Vonage Holdings Corporation 0.61 893.8 95.6 259.2 0.3x 8.1x NM 66.1 (1.2) 3.6 (4.2) -1.2 NM -3.4
twx Time Warner Inc. 9.43 47,320.0 33,829.5 72,290.5 1.5x 5.3x 9.3x 41.4 19.0 28.7 7.7 4.2 6.2 5.6
ma Mastercard Incorporated 132.10 4,839.5 17,072.0 14,340.5 3.0x 8.1x NM 100.0 34.4 36.6 (3.9) 15.5 -7.7 38.9
v Visa, Inc. 44.18 6,263.0 37,380.2 31,199.2 5.0x 10.3x 76.5x 82.3 44.6 48.4 12.8 8.9 7.8 16.8
Max 303.08 47,320.0 95,395.7 80,983.1 5.0 167.5 76.5 100.0 44.6 48.4 24.14 15.50 38.14 38.88
Median 27.89 6,748.6 19,372.6 17,062.3 1.7 9.2 18.3 59.3 13.1 23.3 5.60 6.50 7.79 10.79
Min 0.61 873.0 95.6 208.2 0.2 5.3 9.3 16.7 (2.7) 0.1 -4.20 -9.03 -148.64 -16.91
Mean 70.11 13,310.0 27,717.8 29,001.6 2.1 29.5 31.3 55.9 16.9 22.2 6.33 5.50 -10.63 9.95
ebay eBay Inc. 13.28 8,686.0 16,957.8 13,314.0 1.5 4.6 9.2 75.2 25.9 33.7 22.37 9.68 18.02 13.03

Source: eBay company reports, Capital IQ, Sturdivant & Co. Research

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STURDIVANT & CO., INC.

eBay Segment Analysis

Marketplaces

Estimate
Transactions 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
USMarketplace 554.8 588.9 583.1 555.0 558.7 481.3 466.8 462.2 437.6 474.7
International Marketplace 601.1 691.4 684.5 678.3 605.2 565.0 548.0 542.5 557.0 629.3
% from International 52% 54% 54% 55% 52% 54% 54% 54% 56% 57%
Marketplaces 1,155.886 1,280.302 1,267.633 1,233.307 1,163.890 1,046.227 1,014.840 1,004.692 994.645 1,104.056
Current quarter vs prior quarter 2% 11% -1% -3% -6% -10% -3% -1% -1% 11%
Current quarter vs prior year quarter 24% 17% 14% 9% 1% -18% -20% -19% -15% 6%

Marketing Service
USMarketplace 85.7 113.3 91.0 87.6 83.1 84.1 83.3 81.9 86.8 96.3
International Marketplace 79.1 108.9 125.7 137.1 129.9 137.2 135.8 139.4 147.8 171.1
% from International 48% 49% 58% 61% 61% 62% 62% 63% 63% 64%
Marketplaces 164.746 222.205 216.684 224.724 212.963 221.323 219.110 221.301 234.579 267.420
Current quarter vs prior quarter 5% 35% -2% 4% -5% 4% -1% 1% 6% 14%
Current quarter vs prior year quarter 40% 51% 56% 43% 29% 0% 1% -2% 10% 21%

Marketplaces US 640.5 702.3 674.1 642.6 641.7 565.4 550.1 544.0 524.4 571.0
Marketplaces International 680.1 800.2 810.2 815.4 735.1 702.2 683.9 682.0 704.8 800.5

Total Marketplaces 1,320.632 1,502.507 1,484.317 1,458.031 1,376.853 1,267.550 1,233.950 1,225.993 1,229.224 1,371.476

Estimate
Data Points 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Active Users 83 83.2 83.9 84.5 85.7 86.3 85.4 83.7 82.9 85.4
Current quarter vs prior quarter 0% 0% 1% 1% 1% 1% -1% -2% -1% 3%
Current quarter vs prior year quarter 4% 2% 1% 1% 3% 4% 2% -1% -3% -1%
Estimate
Number of New Listings 555.6 637.2 647.5 666.9 700.2 707.2 707.2 700.1 693.1 713.9
Current quarter vs prior quarter -1% 15% 2% 3% 5% 1% 0% -1% -1% 3%
Current quarter vs prior year quarter -5% 4% 10% 19% 26% 11% 9% 5% -1% 1%
as % Total Marketplace Rev 42% 42% 44% 46% 51% 56% 57% 57% 56% 52%

Gross Merchandise Volume 14,395 16,213 16,036 15,684 14,284 13,646 13,510 13,374 13,508 15,129
Current quarter vs prior quarter 0% 13% -1% -2% -9% -4% -1% -1% 1% 12%
Current quarter vs prior year quarter 14% 12% 12% 8% -1% -16% -16% -15% -5% 11%
as % Total Marketplace Rev 9.2% 9.3% 9.3% 9.3% 9.6% 9.3% 9.1% 9.2% 9.1% 9.1%

Fixed Price Trading as % of GMV 41% 42% 42% 43% 46% 49% 48% 51% 52% 53%

eBay Stores 520 532 547 552 534 516 506 501 506 521
Current quarter vs prior quarter -20% 2% 3% 1% -3% -3% -2% -1% 1% 3%
Current quarter vs prior year quarter -9% -10% -13% -15% 3% -3% -8% -9% -5% 1%
% of International eBay Stores 46% 46% 46% 45% 43% 43% 43% 43% 43% 43%

Source: eBay company reports, Sturdivant & Co. Research

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STURDIVANT & CO., INC.

eBay Segment Analysis

Payments

Estimate
Transactions 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
USPayments 255.3 302.0 319.0 325.0 317.0 332.3 329.5 332.8 336.4 373.0
International Marketplace 192.6 237.3 240.7 255.3 259.3 271.9 280.7 283.5 298.4 344.3
% from International 43% 44% 43% 44% 45% 45% 46% 46% 47% 48%
Payments 447.952 539.301 559.720 580.287 576.302 604.168 610.210 616.312 634.801 717.325
Current quarter vs prior quarter 2% 20% 4% 4% -1% 5% 1% 1% 3% 13%
Current quarter vs prior year quarter 32% 34% 34% 34% 29% 12% 9% 6% 10% 19%

Marketing Service
USMarketplace 12.8 11.9 10.9 9.5 10.0 9.6 9.1 9.1 8.9 9.4
International Marketplace 9.7 11.5 10.9 12.0 10.9 9.3 9.4 9.4 10.0 11.0
% from International 43% 49% 50% 56% 52% 49% 51% 51% 53% 54%
Payments 22.444 23.411 21.859 21.508 20.9 18.898 18.520 18.520 18.890 20.402
Current quarter vs prior quarter 5% 4% -7% -2% -3% -10% -2% 0% 2% 8%
Current quarter vs prior year quarter 135% 69% 7% -2% -7% -19% -15% -14% -10% 8%

Payments US 268.1 313.9 330.0 334.4 327.0 341.9 338.6 341.9 345.3 382.4
Payments International 202.3 248.8 251.6 267.4 270.2 281.1 290.1 292.9 308.4 355.3

Total Payments 470.396 562.712 581.579 601.795 597.202 623.066 628.730 634.832 653.692 737.727

Estimate
Data Points 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Active Registered Accounts 54.8 57.3 60.2 62.6 65.3 70.4 69.7 68.3 67.6 69.6
Current quarter vs prior quarter 4% 5% 5% 4% 4% 8% -1% -2% -1% 3%
Current quarter vs prior year quarter 16% 16% 17% 19% 19% 23% 16% 9% 4% -1%

Net Number of Payments 172.2 203.9 211 210.9 214.5 252.2 249.7 244.7 242.2 249.5
Current quarter vs prior quarter 3% 18% 3% 0% 2% 18% -1% -2% -1% 3%
Current quarter vs prior year quarter 21% 22% 23% 26% 25% 24% 18% 16% 13% -1%
as % Total Marketplace Rev 3.14 3.56 3.50 3.37 3.28 3.58 3.58 3.58 3.58 3.58

Net Total payment volume 11,569 14,044 14,417 14,930 14,812 15,988 15,828 15,512 15,356 16,892
Current quarter vs prior quarter 4% 21% 3% 4% -1% 8% -1% -2% -1% 10%
Current quarter vs prior year quarter 34% 35% 34% 35% 28% 14% 10% 4% 4% 6%
as % Total Marketplace Rev 4.1% 4.0% 4.0% 4.0% 4.0% 3.9% 4.0% 4.1% 4.3% 4.4%

Merchant Services net as % of Total 44% 44% 46% 49% 51% 50% 48% 51% 52% 53%

Transaction rates
Transaction revenue rate 3.87% 3.84% 3.88% 3.89% 3.89% 3.78% 3.82% 3.83% 3.84% 3.84%
Transaction processing expense rate 1.21% 1.18% 1.18% 1.23% 1.20% 1.16% 1.21% 1.21% 1.21% 1.21%
Transaction loss rate 0.27% 0.27% 0.24% 0.27% 0.29% 0.33% 0.27% 0.27% 0.27% 0.29%
Source: eBay company reports, Sturdivant & Co. Research

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STURDIVANT & CO., INC.

eBay Segment Analysis

Communications

Estimate
Transactions 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09
USCommunications 15.9 17.7 20.4 20.8 24.7 26.3 23.7 27.0 28.9 30.9
International Communications 77.9 92.7 99.4 109.3 112.5 112.3 124.6 131.8 141.0 150.9
% from International 83% 84% 83% 84% 82% 81% 84% 83% 83% 83%
Communications 93.823 110.364 119.791 130.151 137.201 138.660 148.366 158.752 169.864 181.755
Current quarter vs prior quarter 2% 18% 9% 9% 5% 1% 7% 7% 7% 7%
Current quarter vs prior year quarter 91% 80% 62% 51% 46% 26% 24% 22% 24% 31%

Marketing Service
USCommunications 1.3 1.5 2.2 1.9 2.3 2.6 3.1 3.1 3.1 3.3
International Communications 3.1 3.5 4.4 3.8 4.0 4.0 3.3 3.3 3.5 3.8
% from International 70% 70% 67% 66% 64% 61% 51% 51% 53% 54%
Communications 4.369 5.023 6.536 5.684 6.266 6.552 6.421 6.421 6.549 7.073
Current quarter vs prior quarter 32% 15% 30% -13% 10% 5% -2% 0% 2% 8%
Current quarter vs prior year quarter 455% 14% 44% 71% 43% 30% -2% 13% 5% 8%

Communications US 17.3 19.2 22.5 22.8 27.0 28.9 26.9 30.1 32.0 34.2
Communications International 80.9 96.2 103.8 113.1 116.5 116.3 127.9 135.0 144.5 154.7

Total Communications 98.192 115.387 126.327 135.835 143.467 145.212 154.787 165.173 176.414 188.828

Estimate
Data Points 3Q07 4Q07 1Q08 2Q08 3Q08 4Q08 1Q09 2Q09 3Q09 4Q09

Registered Users 245.7 276.3 309.3 338.2 370.2 405.3 437.7 459.6 478.0 492.3
Current quarter vs prior quarter 4% 12% 12% 9% 9% 9% 8% 5% 4% 3%
Current quarter vs prior year quarter 81% 61% 58% 54% 51% 47% 42% 36% 29% 21%

Users / Total Revenue 2.50 2.39 2.45 2.49 2.58 2.79 2.83 2.78 2.71 2.61
Current quarter vs prior quarter -4% 2% 2% 4% 8% 1% -2% -3% -4%
Current quarter vs prior year quarter 3% 17% 15% 12% 5% -7%

Source: eBay company reports, Sturdivant & Co. Research

14
 STURDIVANT & CO., INC.

eBay Income Statement

1Q08 2Q08 3Q08 4Q08 2008 1Q09 E 2Q09 E 3Q09 E 4Q09 E 2009 E
Net Revenues 2,192.223 2,195.661 2,117.522 2,035.846 8,541.252 2,017.467 2,025.997 2,059.329 2,298.031 8,400.824
Cost of Revenues 525.412 562.103 560.963 579.591 2,228.069 568.926 547.019 551.900 608.978 2,276.823
Gross Profit 1,666.811 1,633.558 1,556.559 1,456.255 6,313.183 1,448.541 1,478.978 1,507.429 1,689.053 6,124.001
76.0% 74.4% 73.5% 71.5% 73.9% 71.8% 73.0% 73.2% 73.5% 72.9%
Operating Expenses
Sales and Marketing 527.178 512.787 457.216 418.361 1,915.542 423.668 425.459 453.052 505.567 1,807.747
Product Development 176.76 186.791 190.842 171.207 725.600 181.572 170.184 175.043 197.631 724.429
General & Admin 355.262 333.695 331.715 205.080 1,225.752 322.795 303.900 319.196 344.705 1,290.595
Amort of Intangible assets 54.834 54.918 52.72 72.444 234.916 50.437 50.650 51.483 57.451 210.021
Retructuring 49.119 14.000 0.000 0.000 0.000 14.000
Provision for transaction and loan losses 86.581 70.000 65.000 65.000 90.000 290.000
Stock based Comp 87.381 91.849 90.251 82.561 352.042 90.000 70.910 72.077 91.921 324.908
Total Operating Expenses 1,114.034 1,088.191 1,032.493 1,002.792 4,101.810 1,062.471 1,015.193 1,063.775 1,195.353 4,032.792

Income (loss) from operations 552.777 545.367 524.066 453.463 2,211.373 386.070 463.785 443.654 493.700 2,091.209
Interest and other income 29.61 23.386 38.556 24.368 115.920 21.000 24.000 25.000 27.000 97.000
Intererst Expense (2.87) (0.62) 0.01 (4.56) (8.04) (5.00) (6.00) (5.00) (5.00) (21.00)

Income before taxes 579.521 568.134 562.633 473.268 2,319.256 402.070 481.785 463.654 515.700 2,167.209
Provision for income taxes 119.803 107.788 70.423 106.076 404.090 76.393 96.357 83.458 123.768 379.976
20.7% 19.0% 12.5% 22.4% 17.4% 19.0% 20.0% 18.0% 24.0% 17.5%
Net Income 459.718 460.346 492.21 367.192 1,915.166 325.677 385.428 380.197 391.932 1,787.233

Proforma Net Income 565.2 569.6 593.8 523.768 2,328.545 432.565 459.440 456.208 493.756 2,169.107

EPS $ 0.42 $ 0.43 $ 0.46 $ 0.41 $ 1.72 $ 0.34 $ 0.37 $ 0.37 $ 0.40 $ 1.47

Share Outstanding 1,343.989 1,325.136 1,297.484 1,271.534 1,309.536 1,258.819 1,246.231 1,246.231 1,246.231 1,249.378
Source: eBay company reports, Sturdivant & Co. Research

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STURDIVANT & CO., INC.

eBay Statement of Cash Flows

1Q08 2Q08 3Q08 4Q08

Net Income $ 459.718 $ 460.346 $ 492.210 $ 367.192

Adjustments
Provision for transaction & loan losses 70.06 65.13 75.24 86.58
Depreciation and Amortization 165.98 173.36 178.58 201.90
Stock-Based Comp expense 87.38 91.85 90.25 83.84
Deferred Income Taxes (32.03) (42.02) (36.90) (39.00)
Tax benefit from stock based comp 14.80 15.10 8.33 2.67
Excess tax benefit from stock based comp (1.01) (2.81) (0.85) (0.03)
Changes in Assets and Liabilities, net of acquistions
accounts receivable (52.30) (6.45) 11.14 (18.79)
funds receevable & amounts due customers (217.32) 46.20 128.87 87.87
other current assets (13.47) (63.84) (34.79) 20.91
other Non-currents assets 12.35 2.83 (41.42) 37.38
Accounts Payable 38.56 (32.76) 27.50 (18.35)
Funds Payable & amounts due to customers 217.32 (46.20) (128.87) (87.87)
Accrued expenses and other liabilities (25.98) 30.27 (109.61) (68.24)
deferred revenue and customer advances 15.87 2.65 (6.04) (2.13)
Income taxes payable and other tax liabiliites 26.35 44.76 39.75 20.01
Net Cash provided by operating activities 836.33 803.54 768.64 683.94

Cash flows from investing activities

Purchases of PPE (134.64) (121.68) (150.41) (159.15)
Principle loans receiveable (106.51)
Purchases of investments (9.31) (14.62) (84.06) (0.14)
Maturities and sales of investments 4.02 28.69 9.54 93.95
Acquisitions, net of cash acquired (148.77) (10.10) - (1201.23)
Other (45.46) (5.74) (0.17) (1.36)
Net Cash used in investing activities (334.17) (123.45) (225.10) (1374.43)

Cash flows from financing activities

Proceeds from issuance of common stock 8.88 76.49 13.36 36.41
Repurchases of common stock (992.77) (562.52) (624.26) (0.16)
Excess tax benefits from stock based comp 1.01 2.81 0.85 0.31
Payments on acquired obligations (200.22) 0.00 (433.98)
Net Proceeds from borrowing under LOC 1000.00
Net Cash used in financing activities (1183.10) (483.22) (610.06) 602.58
Effect of exchange rate changes on cash and equivalents 94.99 (0.89) (211.56) (65.60)
Net increase (decrease) in cash and equivalents (585.95) 195.98 (278.08) (153.51)
Cash and equivalents at beginning of period 4221.19 3635.24 3831.22 3553.14
Cash and equivalents at end of period $ 3,635.240 $ 3,831.217 $ 3,553.138 $ 3,399.628
Source: eBay company reports, Sturdivant & Co. Research

16
STURDIVANT & CO., INC.

eBay Balance Sheet

4Q07 1Q08 2Q08 3Q08 4Q08

Current Assets
Cash and equivalents 4,221.191 3,565.182 3,696.028 3,342.717 3188.928
Short term investments 676.264 422.696 355.336 301.136 163.734
Accounts Recievable 480.557 496.942 479.089 436.456 435.197
Loans and interest recievable 427.337 1,730.898 1,684.703 1,555.835 570.071
Funds Receivable and customer accounts 1467.962
Other Current assets 1,317.156 242.276 305.231 372.202 460.698
Total Current assets 7,122.505 6,457.994 6,520.387 6,008.346 6,286.590

Long Term Investments 138.237 120.263 130.353 133.629 106.178

PPE 1,120.452 1,135.765 1,124.527 1,215.469 1198.714
Goodwill 6,257.153 6,544.948 6,522.767 6,172.133 7025.398
Intangible assets 596.038 615.253 554.633 467.610 736.134
Other assets 131.652 172.082 168.958 242.970 239.425
Total Assets 15,366.037 15,046.305 15,021.625 14,240.157 15,592.439

Liabilitities and Stockholders' Equity

Current Liabilities
Accounts Payable 156.613 169.169 127.844 217.272 170.332
Funds Payable due customers 1,513.578 1,730.898 1,684.703 1,555.835 1467.962
Accrued expenses & other liabilities 951.139 863.882 908.001 804.634 784.774
Deferred Revenue and customer advances 166.495 182.346 186.483 180.777 181.596
Income Taxes Payable 111.754 134.137 99.203 96.215 100.423
Borrowings from Credit agreement 200.000 - - - 1000
Total Current Liabilities 3,099.579 3,080.432 3,006.234 2,854.733 3,705.087

Deferred and other tax liabilities 510.557 551.830 590.814 639.926 753.965
Other Liabiliites 51.299 52.841 52.531 51.803 49.529
Total Liabilities 3,661.435 3,685.103 3,649.579 3,546.462 4,508.581

Total stockholders' equity 11,704.602 11,361.202 11,372.046 10,693.695 11,083.858

Total Liabilities and stockholders' equity' 15,366.037 15,046.305 15,021.625 14,240.157 15,592.439
Source: eBay company reports, Sturdivant & Co. Research

17
STURDIVANT & CO., INC.

eBay Capital Structure

For the Fiscal Period Ending 12 months Dec-31-2005 12 months Dec-31-2006 12 months Dec-31-2007 12 months Dec-31-2008
Total Debt - - 200.2 1,160.0
0.0% 0.0% 1.7% 9.5%
Total Common Equity 10,048.0 10,904.6 11,704.6 11,083.9
100.0% 100.0% 98.3% 98.3%
Total Capital
10,048.0 10,904.6 11,904.8 12,243.9

For the Fiscal Period Ending 12 months Dec-31-2005 12 months Dec-31-2006 12 months Dec-31-2007 12 months Dec-31-2008
Total Revolving Credit 200.2 1,160.0
100% 100%
Total Principal Due
200.2 1,160.0
100% 100%
Total Debt Outstanding
200.2 1,160.0

Available Credit
Undrawn Revolving Credit 1,799.8 840.0

Total Undrawn Credit 1,799.8 840.0

Source: Capital IQ, eBay company reports, Sturdivant & Co. Research

18
STURDIVANT & CO., INC.

Sturdivant & Co.’s

Businessman’s Approach to Value Philosophy

Sturdivant & Co. uses the businessman’s approach to evaluating stocks. This philosophy is predicated on looking at a
company as a prudent man would were he to consider making a reasoned investment in a business. We focus on a
company’s strategy, the competitive position a company has versus its peers, quality of management, risk factors,
prospects for growth, as well as critical catalysts and milestones as evidence of progress. Finally, we look at a
company’s valuation to determine where we feel the stock is priced attractively.

Chairman

Albert A. Sturdivant
Asturdivant@sturdivant-co.com
856-751-1331 ext. 108

Fundamental Research

Richard A. Verdi Beth Ann Loewy, CFA Brian Bolan

Rverdi@sturdivant-co.com Bloewy@sturdivant-co.com Bbolan@sturdivant-co.com
856-751-1331 ext. 109 856-751-1331 ext. 114 312-345-1534
Industrials Food Technology
Consumer Staples
Retail

Institutional Sales

Carl R. Gibbs, Jr. Terry Williams

Cgibbs@sturdivant-co.com Twilliams@sturdivant-co.com
856-751-1331 ext. 107 856-751-1331 ext. 101

Institutional Trading

Harvey R. de Krafft Debra L. Bailey James Campanella

Hdekrafft@sturdivant-co.com Dbailey@sturdivant-co.com Jcampanella@sturdivant-co.com
800-486-1515 or 800-486-1515 or 800-486-1515 or
856-751-1331 ext. 112 856-751-1331 ext. 110 856-751-1331 ext. 115

19
STURDIVANT & CO., INC.

Ticker Date Price Rating Target

EBAY 1/22/09 $13.28 Marketperform $13.00

Total Internet Group

Outperform Marketperform Underperform

25% 50% 25%

Investment Banking Relationship

Outperform Marketperform Underperform

0% 0% 0%

US – Technology Industry

Investment Rating Company Ticker Analyst

Market Outperform
Google GOOG Brian Bolan
Market Outperform
Yahoo! YHOO Brian Bolan
eBay eBay Brian Bolan
Market Outperform
Amazon AMZN Brian Bolan

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