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| Author | Topic: eBay (EBAY) |
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heister |
Wow! Wells Fargo. Didn't know they were still in business ![]() I see Billpoint (which is owned by eBay) as the big winner. The more people they get using this system, the more they get locked in to making small payments between each other on the web. If they start making small payments to other consumers eventually the idea of small payments to web sites may come back into vogue. People will be able to either view ads, or pay just a little bit for a product without ads. It could become kinda like cable TV. |
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InvestorGuide Weekly Administrator |
eBay Inc. and Wells Fargo & Co. are teaming up on an ambitious plan to let millions of online enthusiasts take credit-card payments when selling items on the Internet. (source: SJ Mercury Center) http://www.mercurycenter.com/business/top/059393.htm |
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sittingbull |
Any opinions about - whether the eBay/Sotheby's deal will happen or not? - whether the deal makes sense for eBay? |
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infooverload |
I'm not sure exactly about those stats, but eBay sure is trying to continuously improve the overall quality of their business. They may make a $1.6 billion bid for Sotheby's, the high-end auctioneer which competitor Amazon currently has a $45 million stake in (at the time of investment). A London newspaper on Sunday reported that eBay was expressing interest in Sotheby's, which lately has been operating under the cloud of a price-fixing probe. I'm sure auctioneer traditionalists of rolling in their graves, but maybe this is what is necessary to bring high-end items to the masses that can afford them. |
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gatsby |
Rather, I should have said "stats" not "states" |
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gatsby |
Do these states sound right to you all? "eBay hosts about 88% of all completed auctions online...About 66% of eBay's auctions end in a sale. Only about 12% on Yahoo! do." It is interesting to note that Yahoo is beginning to charge fees for certain auction features as well. It seems that in the end, a fee-based model is the model most likely to sustain itself and support a strong community because fees may help create high quality and therefore, more completed auctions. |
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slurm |
> Yahoo is seen as an innocent victim, and eBay is seen as digging their own grave. I basically agree, although it's important to note that eBay's system is much more transaction-intensive and more complex, and therefore more likely to have problems. |
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humanity |
Yahoo's problems were the result of a coordinated attack by a group of hackers, who uploaded a gigabyte of info every second to Yahoo's system. A gigabyte is more than most ecommerce companies see in an entire year. But with eBay, it's general seen as an inhouse problem relating to a lack of cash being spent on upgrading infrastructure. So I guess Yahoo is seen as an innocent victim, and eBay is seen as digging their own grave. |
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JHirsch |
Considering that yahoo's site was down for an hour and a half today... is it worse for it to be down or for someone like ebay to be down? Yahoo's stock seemed to be unaffected by the site outage by the way. Who does a problem like this one hurt more? Jake |
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InvestorGuide Daily Administrator |
The U.S. Justice Department is examining online auctioneer eBay's efforts to restrict comparison shopping tools on its site. http://www.usatoday.com/life/cyber/tech/cth281.htm |
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humanity |
The Justice Department is investigating eBay for anticompetitive practices. The preliminary investigation by the Justice Department's antitrust division, still in the early stages, will not necessarily result in legal action against eBay. eBay has sought to block "shopping bots" and "crawlers" from accessing its Web site. The Justice Department has met with two of eBay's smaller rivals, AuctionWatch.com and Bidder's Edge, according to The Wall Street Journal. My guess is that the Vegas odds on something like this happening were probably about 1 to 100, as eBay clearly hasn't been the most competition-friendly outfit around. |
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dude |
The right number to compare with the 139% revenue growth is the number of auctions, which grew 201%. So the answer is yes, commissions per auction are falling, so eBay is probably feeling some pressure from Yahoo and Amazon, but not so much that there's any clear and present danger. |
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buynow |
A closer look at the financials might help answer that question. For example, in the last twelve months, registered users increased by 359% but revenues only increased by 139%. This could mean that their commissions are falling, a possible sign that Yahoo's free auctions are hurting their ability to charge for their auctions. |
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humanity |
hmmm, $.02 expected vs. $.02 last year. It's great that they beat estimates, but I'm less than thrilled about the earnings growth for a monster like eBay. The estimate says that even analysts weren't expecting growth. Is this related to rising costs on par with rising revenues, or are they just not growing as a business, even though auctions continue to rise? I'm not doubting that $.04 may be a good number, just the growth issue. I realize the article you posted might say, but I didn't have time to check ![]() |
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slurm |
Here's the full earnings report: http://pages.ebay.com/community/aboutebay/investor/q4-99.html All in all, it looks quite good. |
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