Analysis of Economic Moats for Illumina and eBay

A report analyzed the economic moats of Illumina and eBay. For Illumina, the analysis noted that while revenue grew 9.40% in the most recent quarter, earnings fell 11.90%. The report highlighted that Illumina's business model relies on laboratory customers committing to purchasing reagents and flow cells for as long as the installed sequencers run.

The discussion centered on the sustainability of each company's competitive advantage. Illumina's high gross margin and return on equity suggest that its installed base continues to generate strong profits despite falling price per genome.