Has anybody noticed eBay's stock price lately? This thing is dropping like a rock. As mentioned in this blog earlier, it really hasn't been good for shareholders (not to mention option holders) of eBay.
The question that comes to everybody's mind is why? Well, there's no short answer to that question, but, I'll try to give a reasonable explanation:
- First, word on the street is the core Auction business for eBay is slowing. Unfortunately, I don't have a link to share about this, only an 'insider' who happens to work at the online giant.
-Executives are jumping ship left and right. First, Jeff Jordan bounced and then, there was an announcement that Maynard Webb would be leaving before the end of the year. When asked if she was leaving by Maria Bartiromo on a recent edition of Wall Street Week, CEO Meg Whitman simply shrugged her shoulders, smiled and said "I'm in it for the long-haul".
- eBay's recent snub of Google and refusing to allow sellers to use Google Checkout as an online payment method didn't score any points for it with people outside the company.
- Lastly, eBay recently raised prices for users of its online stores program.
All of these issues (at least IMHO) seem to contribute to a dropping stock prices. It should be intersting to see how low it will go.
No comments:
Post a Comment