Question
EBay shares decline on brokerage report; Analyst raises concerns about auto-auction sales Smith Barney man urges changes to eBay Motors site
Greg Wiles
Bloomberg News
351 words
14 October 2003
The Toronto Star
Ontario
D04
English
Copyright (c) 2003 The Toronto Star
SAN FRANCISCO -- Shares of eBay Inc., the world's largest Internet auctioneer, closed 2.4 per cent lower yesterday after a Smith Barney analyst reduced his rating to "sell" because of concern about the company's automotive-auction sales.
The business, which accounted for as much as 20 per cent of eBay's sales increases in the past two years, may not achieve growth expectations unless eBay makes changes, according to Smith Barney analyst Lanny Baker. He previously had a "hold" rating on shares of the company, which is based in San Jose, Calif.
EBay Motors, the company's automotive site, was started three years ago. The category is the company's largest when measured by the value of merchandise sold and probably accounts for 11 per cent of the company's revenue, according to Baker. A Smith Barney survey of U.S. used-car dealers found 40 per cent of them have quit listing on eBay Motors or decided against using the auction site after evaluating it.
"In particular, the skeptics cite cost and complexity as the service's primary drawbacks," Baker wrote in a research report. That suggests the eBay Motors site may have growth challenges ahead, the report said.
The category was responsible for as much as 40 per cent of the increase in the value of merchandise sold on eBay in the past two years, according to Baker. EBay doesn't sell vehicles in operating a Web marketplace. Revenue comes from listing fees, commissions and services.
Shares of EBay fell $1.47 (U.S.) to close at $58.99 on the Nasdaq Stock Market yesterday. The company's share price has more than doubled in the past year.
The value of merchandise sold through eBay Motors in the second quarter equates to $6.3 billion on an annual basis, the company has said. That's more than triple the annualized sales of $2 billion each for consumer electronics and computers.
Document TOR0000020031014dzae0002p
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Melinda
Answer
ouch http://community.here.com/infopop/em...icon_frown.gif
and this Barney guy has sold exactly how many cars or automotive related items on ebay motors? http://community.here.com/infopop/em...on_biggrin.gif
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Answer
"skeptics cite cost and complexity as the service's primary drawbacks"
wow, there's a newsflash for you http://community.here.com/infopop/em.../icon_wink.gif
Mel-
KISS, ebay!
Answer
yep, now do they wanna tell us something we don't know http://community.here.com/infopop/em...on_biggrin.gif
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