I've been listening to Yahoo's analyst day in the background all day today and just heard the founder of Chinese Internet portal and Yahoo! partner Alibaba speak. His name is Jack Ma and he did talk about eBay.
Ma said he foresaw eBay would be coming to China, which was one reason Alibaba branched into consumer-to-consumer sales. AliPay is its payment system -- a direct competitor to Paypal. Ma says there are lots of eBay users that use AliPay.
Apparently Alibaba has eBay shareholders concerned (international is a huge part of eBay's growth plans). An analyst note referenced on theflyonthewall.com yesterday referred to how Yahoo's shareholder meeting could be a negative for eBay, partly because China and Alibaba would be a highlight.
EBay's shares are down 2.4% today. But I just checked and find that Yahoo!'s stock is down 2.8% today. So even if eBay shareholders are worried about Alibaba, Yahoo! shareholders are even more worried about other issues.
Ma is wrapping up his comments on the call now. He thinks Alibaba will be a huge company, one of the top three Internet companies in the world in 10 years. We'll see!
Will Rich Ross really have a positive impact on Disney's movie operations?
Consumers sick of recession, may spend extra on holidays
Corrections, seasonality and Santa Claus
Reader Comments (Page 1 of 1)
5-17-2006 @ 5:33PM
ma said...
Who are you people doing these blogs?
Investors of YHOO and EBAY know these are great co's.
If they go down it's not because of Alibab or that ebay people are concerned.
It's inflation and interest rates.
If you are going to blog then say something interesting.
5-18-2006 @ 5:03AM
eastboy said...
they are competitor of eachother when alibaba comes into c to c field. One day, one company will win we will see whom.
5-20-2006 @ 8:09AM
Benjamin Taylor said...
Whatever ebay investors are nervous about, I have to think that they are overly pessimistic. Ebay has been able to grow its free cash flow by leaps and bounds over the last few years. The growth rate would have to plummet to justify a stock price below $30.
http://www.brickfinancial.com/2006/05/ebay-dollar-for-50.html
The competitive landscape is difficult to navigate but seriously. I think ebay is a buying opportunity here.