eBay's uncertain future


As the markets have declined, eBay Inc. (NASDAQ: EBAY) has not only been going with the flow, it has been one click ahead of it. Since that fateful Tuesday in late February, the Nasdaq has lost 6.2% of its value, while eBay shares are down 8.5%, more than Amazon.com, Inc. (NASDAQ:AMZN), Google Inc. (NASDAQ:GOOG) or Yahoo! Inc. (NASDAQ:YHOO).

Why could that be, you may ask. In my view it's simple. In dangerous economic times, investors tend to lean toward stocks that offer more security and away from stocks with uncertain futures. What an outstanding concept that is. So to see eBay shares pounded relentlessly back towards their recently undeserved $30 cresting point comes as no surprise to me. As a matter of fact, I would be a bit surprised if it didn't get back down near its recent $28 low point, or perhaps even below that. Shorting eBay might be a concept I'd consider.

For the first time ever, someone used the term "perma-bear" in regard to my opinion of eBay and its future. Once again I put forward the challenge for those who disagree with my negative opinion of eBay's value to go on that site and spend some time reviewing the public discussion boards. While you may be deprived of thousands of dissenting opinions that have been relentlessly purged from eBay's public record by the company, there is still plenty there for you to still get an idea of the problems I see with eBay.

Perma-bear, I like that. Perhaps I'll make that my next eBay user ID.

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Last updated: February 10, 2012: 02:44 PM

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