Thursday, November 13, 2008

Wall Street is Beating Up Ecommerce!

Wow, watching the stock market right now is painful. The beating that eBay and Amazon, among others, are taking right now is bordering on insane.

At the time of this post, there was a slight uptick in the market and Amazon moved back above the $40 per share level and eBay moved above the $12 per share level. How can anybody know when these stocks have hit their bottom. 

Both of these stocks look to be very good buys right now; if this was a regular market. I honestly never saw eBay going below $12; at least until after the Q4 earning call. Perhaps the market is just pricing in the downturn for all of 2009 right now and this will soon turnaround.

I have more faith in Amazon long-term than I do eBay, so I would be more inclined to buy Amazon at $40 than I would eBay at $12 but I'm willing to wait until this market at least makes the appearance that it is turning around.

Just my 15%


ms.pat said...

I'm seeing this wall street business in waves. People get skittish and sell because they feel they're going to lose big...the market sinks! In come the longer term investors and they buy because everything is so much cheaper and because most of these companies are healthy in spite of the price of their stock - and so the market rises. I feel this has been going on for weeks now. Hopefully, it will eventually level off.

Nathan said...

I thought Amazon was a bargain at $70 a share. If I had some money to invest, I would definitely buy at $40.

But I'm a gambler - so what do I know!

Drake said...

I think the last two days were a sell off from the hedge funds. The hedge funds are trying to cover their losses as they continue to lose investors in this market.

Ms.pat - I don't the market is reacting to people being skittish. The market swings are happening because a lot of institutions need the cash to cover their margin calls, derivatives, options or people need to liquidate because they lost their job and need living money.

Henrietta said...

eBay is right where Jetil Patel of Deutsche Bank said it should and would be.