Seeking Alpha

Amazon, eBay pop on good ChannelAdvisor data; Google ticks higher

  • ChannelAdvisor (ECOM +6.9%) clients saw a 34.4% Y/Y June increase in their Amazon (AMZN +4.5%) same-store sales. That growth rate is well above May's 28.1%, and is the highest rate seen in the last 12 months.
  • Client eBay (EBAY +2.5%) same-store sales grew 12.3%. That's a little better than May's 11.5%, and suggests the toll taken by a data breach and Google algorithm changes might be abating a bit. Auctions -19%, fixed-price +18.4%, Motors +10.4%.
  • A positive for Google (GOOG +0.9%): Search ad-driven same-store sales rose 20.4%, a big improvement from May's 11.5% and the 2nd-highest level seen in the last 12 months. Cost per click (ad prices) rose 5% to $0.48, conversion rates 6% to 2.81%, and average order value (AOV) 7% to $137.02.
  • ChannelAdvisor notes AOV has historically "been a good indicator of consumer sentiment," and that the appeal of Google AdWords for marketing costlier items remains strong.
  • Meanwhile, Google's product listing ads (PLAs) keep gaining traction as a vehicle for selling cheaper goods. Their same-store sales rose 47.8%, sharply above May's 21.4%. AOV fell 8.7%, but conversion rates rose 10.5%.
  • Deutsche has upgraded ChannelAdvisor to Buy. eBay reports on July 16, Google on the 17th, and Amazon on the 24th.
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Comments (15)
  • Budavar
    , contributor
    Comments (1391) | Send Message
     
    AMZN, with no meaningful earnings, no dividends + declining cash flow
    is priced at over 500 PER tells me:

     

    1. AMZN exceptionally sly + manipulative, to be able to continue with this con game, now lasting 20 years. Not 2, not 5, not 10, but 20 years!

     

    2. AMZN fans are exceptionally gullible;

     

    3. The market has reached the bubble stage.

     

    AMZN stock has been a terrible investment so far this year =
    DOWN in an UP market. An under-performer..

     

    Despite a chorus of gullible? "gurus who keep issuing Buy recommendations which do not pass the smell test =
    which can not be defended on either ethical or fundamental basis.

     

    With Baba on the horizon + the number of dangerous competitors Bezos has managed to assemble, from poets + authors to Google and from the IRS to Baba,
    the worst about to come will come as a painful surprise to far too many...
    11 Jul 2014, 11:30 AM Reply Like
  • Seeker137
    , contributor
    Comments (388) | Send Message
     
    Ebay insiders were at it again, buying up chunks of stock.
    11 Jul 2014, 12:08 PM Reply Like
  • Gary J
    , contributor
    Comments (6274) | Send Message
     
    AMZN up 4%. Buy and hold or miss out.
    11 Jul 2014, 12:14 PM Reply Like
  • Hayweed
    , contributor
    Comments (386) | Send Message
     
    Miss out on the collapse.
    11 Jul 2014, 04:57 PM Reply Like
  • dan514
    , contributor
    Comments (2) | Send Message
     
    Now going after Dropbox and Evernote. Bezos will not stop until he is in every logical business. He is a true business genius!!
    11 Jul 2014, 05:07 PM Reply Like
  • Seeker137
    , contributor
    Comments (388) | Send Message
     
    Ebay is being clobbered by Amazon in so many ways and on so many different levels that it's downright amusing. That's what happens when you have- as Carl Icahn put it concerning eBay- "the worst corporate governance I have ever seen" and a CEO who is "asleep at the wheel or willfully blind".
    12 Jul 2014, 08:39 AM Reply Like
  • James Sands
    , contributor
    Comments (2431) | Send Message
     
    Nothing more than public banter, for outsiders to gossip about.
    12 Jul 2014, 03:29 PM Reply Like
  • Michael Bryant
    , contributor
    Comments (5822) | Send Message
     
    (AMZN) looks a good buy right now. http://yhoo.it/18MbE85;c= Buy before holiday shopping comes.
    12 Jul 2014, 11:51 AM Reply Like
  • Gary J
    , contributor
    Comments (6274) | Send Message
     
    AMZN a good buy ANYTIME!
    13 Jul 2014, 07:13 AM Reply Like
  • MNSW
    , contributor
    Comments (99) | Send Message
     
    "Ebay is being clobbered by Amazon in so many ways and on so many different levels......"

     

    Except, of course, on profits. There, Ebay "clobbers" Amazon. Ha!!!
    12 Jul 2014, 06:08 PM Reply Like
  • Seeker137
    , contributor
    Comments (388) | Send Message
     
    Funny how these pro-ebay stock fluff pieces never give readers a glimpse at lawsuits against ebay like this one (Luis Rosada vs. eBay), from Courthouse News: "In his lawsuit, Rosado claimed "sellers are on notice that they will not receive a refund if their item runs its course and does not sell, ... [but] sellers have no reason to suspect that they will lose a portion of the listing duration already paid for when their item is delisted after a prospective buyer clicks the Buy It Now button but the item is not sold."
    EBay moved to dismiss all of the claims, arguing that it acted in accordance with the site's user agreement, which states that "insertion fees and optional fees are charged at the time of the listing and are nonrefundable."
    U.S. District Judge Edward Davila found last week, however, that Rosado may be able to show that eBay's user agreement - in particular the portion regarding a user who "commits" to buying an item - is misleading and vague.
    "The court does not find that plaintiff is attempting to re-write the contract as eBay argues," Davila wrote. "Furthermore, the existence of a contract between parties does not intrinsically allow one party to contract to circumvent the factual question of whether the agreement was misrepresented or misleading."
    It is also possible for the class to show that eBay's allegedly misleading statements would mislead the public, as needed to satisfy the standard for fraud claims under FAL and CLRA.
    Rosado showed "that members of the public are likely to be deceived and describe[ed] the content of information omitted that would have clarified eBay's policy in regards to fixed-price listings that ended early without the completion of a sale," the ruling states.
    "Plaintiff also adequately alleged reliance by pointing out that he relied on representations on eBay's website and the online form used to create his listing, believed that his vehicle would be listed for the full amount of listing time purchased unless his vehicle sold before the listing period expired, and had he known he would not receive a refund for the time remaining or that he would not be given an opportunity to relist the item, he would not have placed the listings, for which he paid money and consequently suffered an economic injury," Davila added.
    The ruling also lets Rosado advance his claims for bad faith, unjust enrichment and a declaratory judgment that eBay's behavior violates the law."
    13 Jul 2014, 01:19 AM Reply Like
  • Seeker137
    , contributor
    Comments (388) | Send Message
     
    Funny how these pro-ebay stock fluff pieces never give readers a glimpse at lawsuits against ebay like this one (Luis Rosada vs. eBay), from Courthouse News: "In his lawsuit, Rosado claimed "sellers are on notice that they will not receive a refund if their item runs its course and does not sell, ... [but] sellers have no reason to suspect that they will lose a portion of the listing duration already paid for when their item is delisted after a prospective buyer clicks the Buy It Now button but the item is not sold."
    EBay moved to dismiss all of the claims, arguing that it acted in accordance with the site's user agreement, which states that "insertion fees and optional fees are charged at the time of the listing and are nonrefundable."
    U.S. District Judge Edward Davila found last week, however, that Rosado may be able to show that eBay's user agreement - in particular the portion regarding a user who "commits" to buying an item - is misleading and vague.
    "The court does not find that plaintiff is attempting to re-write the contract as eBay argues," Davila wrote. "Furthermore, the existence of a contract between parties does not intrinsically allow one party to contract to circumvent the factual question of whether the agreement was misrepresented or misleading."
    It is also possible for the class to show that eBay's allegedly misleading statements would mislead the public, as needed to satisfy the standard for fraud claims under FAL and CLRA.
    Rosado showed "that members of the public are likely to be deceived and describe[ed] the content of information omitted that would have clarified eBay's policy in regards to fixed-price listings that ended early without the completion of a sale," the ruling states.
    "Plaintiff also adequately alleged reliance by pointing out that he relied on representations on eBay's website and the online form used to create his listing, believed that his vehicle would be listed for the full amount of listing time purchased unless his vehicle sold before the listing period expired, and had he known he would not receive a refund for the time remaining or that he would not be given an opportunity to relist the item, he would not have placed the listings, for which he paid money and consequently suffered an economic injury," Davila added.
    The ruling also lets Rosado advance his claims for bad faith, unjust enrichment and a declaratory judgment that eBay's behavior violates the law."
    13 Jul 2014, 01:19 AM Reply Like
  • James Sands
    , contributor
    Comments (2431) | Send Message
     
    eBay accounts for risks and impacts associated with its ongoing legal disputes. The most recent annual filing, 2013 stated the following:

     

    "Amounts accrued for legal proceedings for which we believe a loss is probable were not material for the year ended December 31, 2013." The filing does not mention the case you speak of, so it is immaterial.

     

    Your claims against eBay are purely emotionally driven due to your past involvement with the company. Investors are not interested in claims or comments that do not impact eBay.

     

    Small sellers complaining about eBay obviously don't recognize better options, or literally don't have better marketplace options or they would be doing business elsewhere without complaints.

     

    To me it seems that competition is naturally taking away business from those who cannot scale. This is not eBay's fault, it is a particular seller's inability to have a sustainable business model. Business is tough and many fail while few succeed. Especially if we consider time periods of 10, 20, 30, 50, 100 years.

     

    I would advise any sellers on here complaining to focus on their own business rather than nit pick a company on a path to generate $20 billion in revenue. It is in poor taste. If another entity or individual is driving your thought process or actions, you are enslaved by such entity or individual.

     

    Many businesses have lost out due to "unfair" reasons from their perspective. Life in general is not "fair". But if we just focus on the whys, we'll never accomplish anything.
    13 Jul 2014, 12:42 PM Reply Like
  • Seeker137
    , contributor
    Comments (388) | Send Message
     
    Does eBay account for risks and impacts associated with the hacking event and its subsequent mishandling by what Icahn described as a CEO "either asleep at the wheel or blind"? As to the small sellers, Donahoe created the adverse conditions and eBay in the period 1999-2002 went around buying up numerous competing sites (AuctionUniverse, Boxlot, CityAuctions, AAAnds, and shutting them down. I know because I sold a lot of items on competing sites). Ebay/PayPal currently enjoy a type of monopoly of online selling (which they largely created also). To a large extent, Ebay has created a situation where sellers are limited in their viable options in terms of alternatives (Amazon and Bonanza being two of their options, and now Alibaba's 11 Main Street as well). The problem with your analysis is that it ignores the fact that eBay was built on the backs of small sellers and their rare unique items which are why buyers come to eBay even today (they DO NOT come to ebay for the flood of cheap mass-produced junk from the Chinese nor the flood of dollar store retails items, nor are they interested in buying from KMart, JC Penney, Levi's, etc. with eBay inserting itself as middleman for a cut when they can already buy from such big box retailers online already without having eBay as part of the equation). CEO Donahoe's vision of transforming eBay from a "flea market" atmosphere over to big box retailers has been flawed, is not working, and will not work. As far as eBay's financial reports that will be presented Wednesday go, they should be taken with considerable skepticism. They will not reflect the reality of what's going on, they will present the picture that eBay spin doctors of numbers want you to see.
    14 Jul 2014, 08:57 AM Reply Like
  • MNSW
    , contributor
    Comments (99) | Send Message
     
    We'll said James Sands! I agree completely.
    14 Jul 2014, 06:27 PM Reply Like
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