BloggingStocks

eBay not so popular these days?

Posted Nov 27th 2008 12:00PM by Steven MallasSteven Mallas RSS Feed
Filed under: Internet, Yahoo! (YHOO), eBay (EBAY), Amazon.com (AMZN)


I saw some interesting Nielsen data posted at Silicon Alley Insider the other day about traffic levels at eBay (NASDAQ: EBAY). They seem to be on the decline. I don't want to spend time repeating a bunch of the numbers here, but suffice to say that trends in unique visitors and page views on a year-over-year basis have not been favorable to the online-auction entity. One quick example would be the 33% drop for the page-view category seen in October.

What the heck is going on? Man, I remember when eBay was loved unconditionally and considered to be the best yard sale on the block. Heck, it wasn't just for closet-cleaning exercises; a person infused with even a modicum of an entrepreneurial spirit could easily start a business on the site. And its brand was second-to-none in this space. Well, eBay's brand equity remains high, but the bloom has definitely come off the rose, at least from my perspective.

On an anecdotal basis, I've heard many complaints about eBay, especially from the point of view of the sellers. But there's no question that eBay has to do something about the declining stats. People are spending less time at the site, and that surely won't do much in terms of appeasing the sellers.

You'd think that surfers would be utilizing eBay as a way of finding deals in a falling economy. Obviously, management has its work cut out for it in terms of keeping its image value up and maintaining a strong competitive stance against the likes of Amazon (NASDAQ: AMZN) and Yahoo! (NASDAQ: YHOO).

Speaking about Amazon, check out this item at auctionbytes.com. It posts an interesting look at Amazon traffic data as it compares to eBay. Amazon seems to have held up much better in October than eBay did.

eBay is going to need to do some serious marketing to get the eyeballs back to its digital-auction asset. I have to say, the latest data on eBay makes me quite bearish on the stock. I certainly wasn't bullish when I covered the company's Q3 earnings last month.

With the economy still suffering, and with the consumer not so willing to spend those discretionary dollars, I think eBay is still a stock that should be avoided. If you do see value in it, make sure you don't need your investment monies back right away.

Disclosure: I don't own any company mentioned; positions can change at any time.

Tags: Amazon, AMZN, eBay, Internet, online auctions, OnlineAuctions, traffic data, TrafficData, Yahoo, YHOO

Print this

Reader Comments (Page 1 of 2)

| 1 | 2 | Most Recent | Next 20 Comments
Page Loaded in 1328902383059 ms.