eBay - Final Thoughts
Ticker Symbol: EBAY
eBay Final Thoughts
Online retailers have been at the forefront of the uptick in discretionary stocks. Amazon’s improving Q1 margins led some analysts to believe eBay will be able to copy its healthier rival. It remains to be seen if the auctioneer can indeed do so.
Traffic is down, partly due to recently instituted changes to eBay’s selling structure that has alienated many small vendors who are shifting away from eBay to Amazon.
eBay’s restructuring process, including the recently sold StumbleUpon as well as plans to spin off Skype, is ongoing and could be an overly long process for the average shareholder to endure. Their move to spin off Skype, or more likely sell it in the $2 billion range, is seen as a defeat for former CEO Meg Whitman who authorized the $2.6 billion purchase back in 2005.
On a positive note, PayPal businesses helped increase the auctioneer’s account base by 22% to 73.1 million, helping the internet site host easily top Q1 expectations.
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