Ebay stock is down 3 1/2%, much more than analyst expected,,,,and guess why?

[vanman1029]

On Varney & Co (stock market analyst TV show)  this morning, at 9:40 EST time, there was a short segment about Ebay and their unexpected 3 1/2 % drop in the stock market. The reason: Ebay's new format. At the same time, Amazon's stock is up almost 30%. Some one at Ebay better wake up and smell the coffee!

[rixstuff]

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@nawlinsron2 wrote:
Well...suppose there are ten sellers in a widget market...the avg price is $10 with a +/- deviation of 25 cents.
An 11th seller shows up, and can profit at -50 cents from avg.

Did you drive down the price...or the market?

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I did if I saw the lower price and jumped on it like a WWF fighter to snap it up.

[rixstuff]

Also consider that Amazon owns the Washington Post and several other YUGE multi-zillion dollar businesses besides just the online book and video site.  So comparably, Amazon is MUCH MUCH larger and its stock is more valuable anyway.

[thatsallfolks]

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@rixstuff wrote:

Also consider that Amazon owns the Washington Post and several other YUGE multi-zillion dollar businesses besides just the online book and video site.  So comparably, Amazon is MUCH MUCH larger and its stock is more valuable anyway.

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The founder of Amazon owns the Post. Amazon does not.

[felifoll]

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@lemarcheaupuces wrote:

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@rixstuff wrote:

Imagine this:  You are holding 100 pennies in your hand and you drop 3 of them.  Do you really notice? Not really.  I read that report too and given how many TENS OF MILLIONS of people buy on Ebay EVERY DAY, Im not that worried.

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i am not worried either.

i don't understand such thread.

sounds some are saying that Amazon is sooo much better.

well i read long ago an Amazon seller saying;

"most Ebay sellers wouldn't make it is on Amazon".

i have always heard that selling on Amazon is more expensive and a lot harder.

then why compare Ebay to Amazon?

to me it is like comparing Walmart (the world largest co by revenue) to lets say Publix or Alberstons.

check the net (wikipedia) seems Amazon does even better than Walmart (as the most valuable retailer).

did Amazon acquire Whole Food Market?

nevertheless Amazon is in its own league (like Walmart).

Nothing comparable to Ebay.

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Ebay and Amazon are not comparable because the user experience is so much different. Amazon has very strict seller requirements, ebay has none at all. Amazon's site is simple to find what you are looking for, Ebay's is cluttered and messy. There are not ten zillion rules and policies that you need to learn to buy something on Amazon. You will never get barked at by rude sellers or have your money tied up for weeks when a seller doesn't ship. You don't have to weed through pages of fake items and key word spammed titles. In short, Amazon is a much better experience for buyers than ebay. And it's sad because one company shouldn't control such a large portion of the retail market, but they are successful because they treat their customers well. Before Amazon, Ebay was the only place on the internet where you could buy absolutely everything, so buyers would tolerate the numerous unpleasantries of shopping here. They don't have to anymore. 

[rixstuff]

You still cant sell MOST second hand items over on Amazon.  You cant sell anything newer than 20 years old unless you made it yourself on Etsy.  Poshmark is ONLY clothes and makeup.  Ebay is just generally best for everything.  Anything you would throw out on a table at a yard sale, craft show, flea market, dollar store, or boutique you can sell here.

[nawlinsron2]

I'd suggest that the concept of a market now includes the "what have you done for me lately" segment.
If you've been raked over by ebay as either a buyer or seller...you're likely no longer in their market IF the response is negative. I suspect the raked over segment is a lot higher for ebay users than Amazon. Ergo, loss of market potential for ebay.
Maybe it's easy for ebay to replace sellers who were ALSO buyers...I dunno.

[kathieskorner]

First of all comparing ebay to Amazon is pointless - they have gone in far different directions since 2000 - Ebay staying in their original lane - Amazon expanding in multiple directions.

Secondly, the reason ebay's stock went down after posting decent Q3 results is that they lowered expectations for Q4 based on projected additional spending on the website.    Individual Ebay sellers leaving or becoming less profitable has little to do with how ebay is doing overall.    Ebay is still attracting new buyers and new sellers - replacing those that have left.    A lot of my older inventory is purchased by new buyers.  

[nawlinsron2]

I partially agree with you...however...
Both have a large overlap of similar products...it's like a WalMart next to a Kroger. The choice has many factors.
The changes to the site are annoying...for sure to sellers, and possibly for buyers.
In short, they're sacrificing a short term loss for a pie-in-the-sky long term gain.
ebay is also fighting that 55% perception of Amazon being 1st choice...

[nawlinsron2]

If you’re going to use eBay from 2007, you’ll have to add PayPal‘s current stock price to it. That puts the 2007 investment up about 650%, which is phenomenal.
Good point. Ebays stock dropped $30 (50%) when PayPal split off. Every eBay shareholder got 1 PayPal stock for every eBay stock. PayPal is now at $71.00

That works for shareholders on the day of distribution.
Wanna talk about NEW shareholders post distribution?

[tev4all]

Wanna talk about NEW shareholders post distribution?

Not really, as they would be Day traders and poorly advised long term investors.

Seriously, unless there is a 20 percent fluctuation, there really isn't anything to be worried about.

[#12]

Wanna talk about NEW shareholders post distribution?

[#13]

Not really, as they would be Day traders and poorly advised long term investors.

[#14]

Seriously, unless there is a 20 percent fluctuation, there really isn't anything to be worried about.

[mistwomandancing]

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felifoll wrote:..........Before Amazon, Ebay was the only place on the internet where you could buy absolutely everything, so buyers would tolerate the numerous unpleasantries of shopping here. They don't have to anymore. 

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For the common and mundane, I can find it on Amazon, and there will usually be some seller willing to undercut everyone else to make my needed mundane purchase a cheap one.  I don't use Amazon much though, as we have mundane Walmart here, and we *coffee* with old cronies Monday mornings close to there, so that's an easy shopping stop-off.

It's eBay where I can still find the fabulous treasures and hard-to-find art pieces and the exciting collectible that I haven't seen in years though!!!  This is still the Number One spot for me to find The Most Fabulous Stuff.

I don't think the two sites compare at all.. certainly not for the areas where my interests lie.

[mistwomandancing]

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nawlinsron2 wrote:..........I'd suggest that the concept of a market now includes the "what have you done for me lately" segment..........If you've been raked over by ebay as either a buyer or seller...you're likely no longer in their market IF the response is negative. I suspect the raked over segment is a lot higher for ebay users than Amazon. Ergo, loss of market potential for ebay.

Maybe it's easy for ebay to replace sellers who were ALSO buyers...I dunno.

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Apparently not very difficult.  When you stop to think about it, how many high schools graduate yet another class of young adults every spring.. all ready to join the *adults* in life (as if they already hadn't..)  So every year, new batches of thousands and thousands and thousands of adults being ready to start their lives.  Some even decide to add selling on eBay to their efforts.

My focus for being irked about it all is that there are too MANY sellers here on eBay already, not that eBay might have any difficulty in replacing any who leave, whether they were buyers or not.  Frankly, any who were buyers already know HOW to make sure they are covered if they have a problem with a seller here, so aren't likely to come out the loser in a *situation*

[nawlinsron2]

That's a thought...may I subtract from that number the ones who don't have the wherewithal to understand market value, supply and demand, cost of shipping/how to ship, customer service...and access to re-sale items, assuming they know market value?
It ain't just numbers...

[the*dog*ate*my*tablecloth]

Last I heard Amazon is losing money on the marketplace and only continuing to exist because of the cloud services. What does this have to do with Ebay?

[thatsallfolks]

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@nawlinsron2 wrote:
If you’re going to use eBay from 2007, you’ll have to add PayPal‘s current stock price to it. That puts the 2007 investment up about 650%, which is phenomenal.
Good point. Ebays stock dropped $30 (50%) when PayPal split off. Every eBay shareholder got 1 PayPal stock for every eBay stock. PayPal is now at $71.00

That works for shareholders on the day of distribution.
Wanna talk about NEW shareholders post distribution?

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Sure, since you feel the need to keep moving the goalposts: on the day of the split in 2015, eBay opened at $26.89, so at the current price of $37.61, it’s up 40% in just over two years. 

Let me know where you move the goalposts to next.