Thursday, August 02, 2007

eBay News Today!

EBay Inc.'s ticket-reselling subsidiary StubHub said Wednesday it has signed a five-year deal which makes it the official secondary ticket reseller for Major League Baseball.

Congratulations to Chris Tsakalakis and his team at StubHub.

Also in eBay other related news, PayPal announced today that they will be offering Pay Later, a new service offering instant credit on websites. This will put them in direct competition will BillMeLater.com. A bold move and I applaud the PayPal team for their aggresiveness.

Now, with these two new developments and the company coming off stellar Q2 earnings, you would think eBay's share price would rise substantially, but as of this writing it is up barely 23 cents on the day. I've asked this question over and over again: Why can't eBay's stock get any traction? There is something going on "outside the numbers" investors are obviously not confident in the growth of this stock. (While Amazon keeps hitting new 52 week highs)

I believe the share price has a huge upside but current management is failing to grasp the needed changes. I do not own shares in eBay and I wouldn't be holding them now, if I did. eBay Marketplaces should be taking over the ecommerce world, instead they are dragging down the stock. I certainly hope they get their act together before the 4th Quarter.

Amazon is becoming the ecommerce darling becaue they are growing. Sellers are falling all over themselves to get a foothold in Amazon's marketplace, while they look for an exit from eBay.

No wonder insiders are selling their shares now, they must not see any growth in the stock either. eBay needs to "wake up and smell the coffee" before it once again becomes just an auction site. Could you imagine where they would be without PayPal, StubHub, and Shopping.com (Don't get me started on Skype)

I don't want to sound like a broken record but when Investors, Sellers, Buyers and I'm sure many employees are unhappy with the direction of the company, something is definitely wrong.

Sorry I took good news and turned it into a downer.

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