eBay Forecasting Slow Down in Q3

Having significantly lightened my position in EBAY after their mediocre Q2 results back in July, I have not been following the company as closely (hence the relative lack of posts). That said, EBAY spared me the trouble of forecasting Q3 revenue by pre-announcing (should read 'warning') Q3 revenue of around $2.12 billion. This is pretty disastrous. It means Y/Y growth in revenue has fallen to 12.2% and more importantly, Y/Y growth in Marketplace transaction revenue will be close to zero in both domestic and international markets. With such quickly deteriorating fundamentals, its no surprise EBAY is now trading at single-digit P/E ratios.

Comments

[Bob C:]

You aint seen nothing yet! Q4 will be rocked with buyers and sellers leaving eBay en masse when this month's, electronic only (PayPal), payment policy takes effect. Not to mention all of the other crazy policy changes.
Your chart will continue to look like a ski slope.
Soon, but not soon enough, John Donahoe will be gliding down it on his golden skis, heading for another company to ruin with his brilliance!

2008 Oct 14 03:12 PM

[squirrelygirl:]

eBay has lost it's glow and is now but a slowly fading ember of it's former self. I will do all my holiday buying (and selling) anywhere else but eBay. They have slowly killed the goose that laid the golden eggs (i.e. their sellers) and now have to live with the consequences of their indifference to the people who helped build them.

2008 Oct 14 07:04 PM

[morleyadams:]

Donahoe and Whitman's "Disruptive Innovation" is creating the destruction of ebay, as planned.

It makes me sick to see what they have done to what WAS a great site. I will never shop there again, unless they change ALL of the 2008 policies back to what they were and get rid of Donahoe and his cronies, including Meg Whitman, who is still an employee and continues to sit on ebay's board. The ebayers hate what has been done to THEIR site. As far as Donahoe himself, he has ONLY shown ebay users contempt and the feeling is mutual. Even ebay employees are fed up with him. Search glassdoor.com to see ebay's miserable 24% approval of ebay's CEO and their comments about his woefully inept lack of leadership qualities.

2008 Oct 15 11:43 AM