EBay's stock sinks to 22-month low. Downgraded with bad news for ebay by Paypal.

[3brothersdeals]

In the 20's now. When they announce the quarter on the 30th, it could go down to the teens. Well deserved IMO.  What a mess of a company.

Shares of eBay Inc. EBAY, -8.10% sank 3.7% in premarket trade Friday, putting them on track to open at the lowest level since January 2017, after the online marketplace was downgraded at Stifel Nicolaus, citing PayPal Holdings Inc.'sPYPL, +10.14% earnings release, which suggested weak third-qaurter gross merchandise volume (GMV) trends at eBay. Analyst Scott Devitt cut his rating to hold from buy, and slashed his price target to $35 from $43. PayPal suggested late Thursday that eBay's marketplace GMV rose 3.4% from a year ago, well below Devitt's estimate of 7.2% growth. "We further expect eBay's multi-year transition to the Adyen payments platform could be bumpy given the long history that buyers and sellers have working almost exclusively with PayPal on the eBay platform," Devitt wrote in a note to clients. EBay is scheduled to report third-quarter results after the Oct. 30 close. The stock has shed 7.5% over the past three months, while the S&P 500 SPX, +0.67% has eased 1.3%.

https://www.marketwatch.com/story/ebays-stock-sinks-toward-22-month-low-after-paypal-suggests-weak-g...

[flipper2flipper]

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@3brothersdeals wrote:

In the 20's now. When they announce the quarter on the 30th, it could go down to the teens. Well deserved IMO.  What a mess of a company.

Shares of eBay Inc. EBAY, -8.10% sank 3.7% in premarket trade Friday, putting them on track to open at the lowest level since January 2017, after the online marketplace was downgraded at Stifel Nicolaus, citing PayPal Holdings Inc.'sPYPL, +10.14% earnings release, which suggested weak third-qaurter gross merchandise volume (GMV) trends at eBay. Analyst Scott Devitt cut his rating to hold from buy, and slashed his price target to $35 from $43. PayPal suggested late Thursday that eBay's marketplace GMV rose 3.4% from a year ago, well below Devitt's estimate of 7.2% growth. "We further expect eBay's multi-year transition to the Adyen payments platform could be bumpy given the long history that buyers and sellers have working almost exclusively with PayPal on the eBay platform," Devitt wrote in a note to clients. EBay is scheduled to report third-quarter results after the Oct. 30 close. The stock has shed 7.5% over the past three months, while the S&P 500 SPX, +0.67% has eased 1.3%.

https://www.marketwatch.com/story/ebays-stock-sinks-toward-22-month-low-after-paypal-suggests-weak-g...

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Not only that, but Ebay's 3rd Quarter Earnings Release date got pushed back to October 30 ..... and that is never good news.

I suspect that they are interviewing candidates for the "Earnings Release Spin Team" to write the upcoming Earnings Release in "Ebay-eze" ......

Something like .....

Our earnings experience was dis-enhanced in the third quarter by A, B, C, D, E, and F

But we are confident that the new postal rates that are gonna crush sellers starting in January 2019 will not have a severely negative earnings effect on blah, blah, blah, blah .... and we plan to immediately create an Earnings Enhancement Team to blah, blah, blah, blah.

[tunicaslot]

Thanks for the update although  - your "well deserved" will upset a lot of people on here who don't sell on other venues. You get farther in life keeping a positive attitude rather than a negative one.

[mr_lincoln]

@3brothersdeals  I suspect eBay anticipated some short term fallout with the eBay-Adyen change but is looking to the future and the additional worldwide markets the new change will nurture and grow.  In the area of antiques, collectibles, unique, vintage, rare, used, etc. we've seen steady growth (not huge but steady) for the past year despite all the changes that have been geared towards competing with Amazon and the new products market.

There other changes going on that will further affect some online sales segments but enhance others  Like the US's new position on shipping costs from China, etc.

Online selling is still a growing and changing industry ... next week it will be something else that sounds like it might upset the apple cart ... but no problem, I like applesuace too LOL!

[lewisburggold]

Scary.  Best regards

[tunicaslot]

I watched one of the vloggers yesterday who is in the new system and is quite happy with it. The first couple of days were touch and go - as is anything new when it is launched and she did lose a couple of sales due to people only wanting to use Paypal - but she's had no problems and said that her sales are up 17%.

[myjunqueyourtreasure]

See, it's when they make statements like that I start to smell a rat. Why on earth would a new in house payments system cause sales to rise?

[orangehound]

Oh my ... eBay may only have 3-4% growth?

This year, eBay has only been getting about 8% growth, which is absolutely terrible in a world where on-line sellers are seeing 20-50% growth.  But, now eBay can't even hit that 8% mark?

Something has to change, and I suspect it is more than just the eBay buyer interface.

• Installing a CEO that has actually has successful retail experience?
• Getting rid of the Far East Customer Service center so that we have customer service that doesn't lie, that understands English, and that actually serves customers?
• Reversing the terrible and growing reputation eBay has as a dishonest platform, and full of unfairness?
• Hiring software heads who actually understand how to do large-scale software development ... and, in particular, not doing hot beta testing?
• Clearly communicating policies to both sellers and buyers, so that these are not "discovered" through the loss of money and product ... and not changing policies every week?
• Having policies that are actually "logical" (for example,  it is maddening for sellers to have a "no return" policy that logic dictates is "as is, all sales final", and then to have that trumped by a false claim with the Money Back Guarantee)?
• Getting rid of all the bad buyers in addition to the bad sellers, so as to have a safer marketplace?
• Negotiating on behalf of buyers to get a low-cost shipping service?

[pburn]

So, you think there's a possibility eBay would have chosen a vlogger who was unhappy with the new system?

[penguins_dont_fly]

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@pburn wrote:
So, you think there's a possibility eBay would have chosen a vlogger who was unhappy with the new system?

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??

eBay doesn't choose vloggers??

Tunica is talking about independent YouTube vlogging sellers.

I have several that I subscribe to. There's some good info to be gleaned from them...but you have to find the ones that actually know what they are talking about. There are some seriously misinformed and misguided ones out there LOL

[destinysdarlings2013]

The stock market analysts who have been recommending the purchase of eBay stock are obviously not sellers on the platform and most likely have not even talked to any sellers.  Perhaps eBay can do one of their surveys asking sellers if they were in a position to do so would they purchase eBay stock as a long term investment.  Based on my experiece I would not invest a single penny.

[vintagecraze50]

Anytime a company makes all kinds of changes people get nervous and withdraw their money. That's how the stock market works--changes happen that are uncertain and everybody runs. LOL.

[vintagecraze50]

Pay Pal stock sank when Ebay split with them. Always happens when there is uncertainty about what change will do to the company. 

[summerlands_art]

Ebay can paint it all they want on the 30th with fancy talk and numbers... the ship is sinking fast ...and thats a fact.

[castlemagicmemories]

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@myjunqueyourtreasure wrote:
See, it's when they make statements like that I start to smell a rat. Why on earth would a new in house payments system cause sales to rise?

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If there are more payment options than before.