eBay after the bell 9-27-06: Giving back some gains

Posted Sep 27th 2006 5:23PM by Melly Alazraki
Filed under: After the Bell, Analyst Upgrades and Downgrades, Rumors, Consumer Experience, Microsoft (MSFT), eBay (EBAY)

While the rumors about eBay China have quieted down today, a different (old) rumor has surfaced. This one claimed Microsoft Corp (NASDAQ: MSFT) could be buying eBay Inc. (NASDAQ: EBAY). I tend to agree with Brian White's take on this possible move -- he sees no synergystic benefits.

Rumors or not, the Street continued as it always does. Yesterday's 5.5% gain was attributed mostly to Goldman Sachs analyst Anthony Noto. He said yesterday that he believed the second quarter revenue growth and listings had likely been a bottom and that he expects growth to stabilize or even accelerate by the end of the year.

Noto wasn't the only bull. Citigroup analyst Mark Mahaney noted today that the recent promotions by eBay could probably cause auction listings for Q3 to exceed his own estimates.

Finally, if you recall, I mentioned eBay My World a while back. It wasn't operational then. Well, it seems to be operational now. I still have to play with it and see what this MySpace style page is all about. I'm thinking more about feedback and seller status replacing "friends." Could eBay do something with all that statistics they hold? Something to think about, especially as My World rolls out.

eBay shares lost 1.99% today, or 55 cents to close at $27.12.

Tags: ebay, microsoft, msft

Print this

Reader Comments (Page 1 of 1)

9-28-2006 @ 10:23AM

Alex said...

"Ebay China say no agreement signed"
http://www.chinaknowledge.com/news/news-detail.aspx?id=4460

Theres so much smoke at the moment its impossible to believe anyone. I'm sure these rumors will surface again when the going gets tough (if can it get any tougher?). The calls for a target price of $50 are puzzling to say the least and are only going to lose credibility for those propagandists making such ridiculous calls. Lets face it, what are the chances of Goldman Sachs doing anything other than demonstrating a bullish attitude towards Ebay? Particularly when you consider the history of Whitman's ties to them and showing favouritism towards the more elite shareholders.

Ebay's attempt to replicate Jack Ma's 'community vibe' with MyWorld is a little late in the day. Ma introduced this to generate a feeling of 'trust' between users in China. The words 'trust' and 'Ebay' are simply incompatible at the moment.