Question
About 20 months ago eBay stock reached it's highest price of nearly $60. per share (adjusted for splits) and Meg Whitman was being honored as one of the best CEO's in American business.
While some sellers and buyers using the site expressed many concerns, the broad financial community seemed to feel the company was well run and had a bright future.
The stock is now trading in the $27/$28 range and an article from Jim Cramer, appearing in The Street.com today, shows a different attitude.
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"Next, taking a look at eBay, Cramer said the company's e-commerce business is not doing well, and its online auction business is seeing slowing growth because of saturation.
Not only is the sector bad, but it is also not cheap for its group, when comparing it with Yahoo! (YHOO - commentary - Cramer's Take), Cramer said.
eBay's management is in denial and unable to recognize what's wrong with the company. Additionally, the future for the company looks pretty bleak, as Internet stocks have no defenses, Cramer said.
After performing the diagnostic test, Cramer said he would sell some eBay now. However, he said he would not sell all of it at once, because snap-back rallies do occur."
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Maybe eBay and Wall Street should have listened a little more carefully to what eBay customers were saying.
Sadly, eBay still dosen't seem to be willing to hear what it's customers are saying.
Full article:
http://www.thestreet.com/_aol/funds/madmoneywrap/10297279.html?cm_ven=AOL&cm_cat=FREE&cm_ite=NA?cm_ ven=AOL&cm_cat=FREE&cm_ite=NA
Answer
eBay's management is in denial and unable to recognize what's wrong with the company. Additionally, the future for the company looks pretty bleak, as Internet stocks have no defenses, Cramer said.
IMO, one of the reasons that Ebay is still standing is because so many sellers are also in denial. They just are not willing to even consider the possibility of Ebay falling flat on its face. So they keep listing much like the drunk who keeps doing the same thing over & over while expecting different results.
Management truly seems to have no clue and I agree that the future is bleak. That is one of the many reasons that I left Ebay.
Answer
Oh, spare us the "I'm so smart and you're so deluded" comments. Yeesh.
I'm still on eBay, not because I'm in denial, but because I'm making money. Actual cash money. Month after month after month. Even during the summer.
You know, it's no sin to have tried and failed on eBay. Hundreds of thousands of people have done it. Not everyone is cut out to be an entrepreneur.
But some of us are. After a lifetime of trying various things, I now know it is my true calling. If eBay goes away, so what? There are always marketplaces, both real and virtual. People find ways to sell, others find ways to buy. Anyone who ever read _Antique Trader Weekly_ knows that very well. Ah, I miss the 4 am calls from East Coasters who got their copy of ATW early and wanted to buy the stuff in my ad.
Jim Cramer is a very funny guy on TV, and I like to watch him if I happen to have the chance (seldom). But he doesn't sit at the right hand of God.
fLufF
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Answer
Oh, spare us the "I'm so smart and you're so deluded" comments. Yeesh.
I'm still on eBay, not because I'm in denial, but because I'm making money.
IF you were speaking to me, I don't believe that I said YOU were in denial. I said MANY sellers are.
You know, it's no sin to have tried and failed on eBay. Hundreds of thousands of people have done it. Not everyone is cut out to be an entrepreneur.
Again if you are speaking to me, I did not say that I had failed either on Ebay or as an entrepreneur. In fact, I have failed at neither. My reasons for leaving Ebay have nothing to do with success or failure.
Ray asked for thoughts and opinions and I gave mine. So please "spare me." Yeesh is right.
Answer
Normally I find your opinions to be worthy of admiration, Ray. In this instance, I'm afraid I have to disagree with you. eBay may or may not be doing things right, but I highly doubt their viability as a stock commodity is or ever was affected critically by whether or not they listen to us sellers.
Other than Summer months, I still make very good money on ebay. Same as it ever was.
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But he doesn't sit at the right hand of God.
Ofcourse not, he'd be taking your spot...
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Actual cash money.
As opposed to.....????
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I'm concerned that when ebay meets it match, it will still be running and all, but final selling prices will be lower, and my cash flow will not be what it once was.
Half the customers will be over at Google-bee.
And this summer is indeed slow, slower than last summer for me.
So I think I will give it a really big push starting Sept. and really load up all my best merch for that final hurah. Perhaps spend my time now doing pictures and descriptions in Word, really gear up!!!
I am not in denial, I can see the writing on the wall. Ebay is a mature business, and even trees do not grow to touch the sky.
Answer
As opposed to people who put their eBay fees on their credit cards, diddle around with PayPal balances by using some for personal purchases, some for business purchases, etc. to the point where they no longer have any idea whether or not they're making money because it's all become unreal to them.
I meet other eBay sellers on my daily rounds. I hear their stories.
Look, I pick up my salary in cash, every day I work, which is usually some part of seven days a week. A fat PayPal balance is just numbers on a screen. Cash in hand is what makes it real.
fLufF
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Answer
This is the best summer I've ever had on eBay. There's still money to be made in some areas.