Thursday, December 07, 2006

Yahoo Management Shakeup! Is eBay Far Behind?

With Yahoo shaking up the executive suite can eBay be far behind? The plight of these two companies is very similar. Both stocks are trading way below their 52-week high. They are both #1 in their categories but slowing growth is a major concern. Yahoo has been criticized for not being nimble enough to compete with the much more effective Google while eBay has had an easier time with investors for at least acknowledging problems and attempting to resolve them. At this point eBay’s saving grace is they don’t have any real competition for their Marketplace business. There are signs that PayPal will experience some pressure from Google’s Checkout in 2007.

If eBay investors thought 2006 was a tough year just wait until 2007. My hunch is 2007 will be this current managements last year to turn things around. Maybe there is a "Peanut Butter Manifesto" being written right now by an eBay executive.