Here's what Fred Hickey, author of The High-Tech Strategist newsletter, had to say about eBay in his December letter:
"eBay's domestic auctions revenue growth has fallen to just 29% in Q3 year-over-year from 32% in Q2 and 41% a year ago. eBay's overall growth (52% last quarter, down from 41% a year ago) is now reliant on the penetration of international markets where competition and barriers to entry are much steeper. The most attractive undeveloped markets, such as China, present all kinds of problems not seen in the U.S...
On the eBay home page, eBay groups its auctions into 32 major categories... A scary amount of the activity (or auctions) appears to be nothing more than attempts to find a sucker somewhere willing to pay a high price for an unwanted item or a "collectible", with the buyer often intending to resell it (on eBay) at an even higher price to a different sucker..."
Hickey says that eBay's valuation is unsustainable. (His newsletter costs $120 per year; call (603) 888-3954.)