EBAY is scheduled to report Q2 EPS on July 16. Deutsche Bank say's "Listing +29% in week 13 but sellers feel the squeeze: Sell." EBAY July option implied volatility of 46 was above its 26-week average of 43 according to Track Data, suggesting larger movement.
Option Update is provided by Stock Specialist Paul Foster of theflyonthewall.com
Over the years, eBay (NASDAQ: EBAY) has overcome numerous adversaries, from customer fears about online purchasing to the very real threat of physical retailers. It has defeated or absorbed dozens of competitors, constantly morphing to offer fresh services to its users while continuing to draw a hefty profit. However, as Gary Sattler recently noted, eBay's unbelievable success may have begun to sow the seeds of its downfall. Once a counter-cultural answer to the monopoly (and monotony) of physical retailers, the online giant has become the dominant culture. Moreover, it's monopoly of online marketing and apparent lack of concern for its users have resulted in massively increased prices and fees, driving many of its sellers right out of the market.
As if eBay's self-destructive tendencies weren't enough of a problem, France's courts have joined in on the march to disaster. In an attempt to protect the integrity of French luxury brands, a French court ruled that eBay must pay approximately $63 million to French companies whose products have been victimized by online sales. The plaintiff, LVMH, which represents several French luxury brands, argued that its businesses have been undermined by eBay. Ebay's first crime was permitting counterfeit copies of Vuitton and Dior bags to appear on the site. As if this wasn't enough, the company was cited for permitting actual bottles of Dior, Kenzo, Givenchy and Guerlain perfume to be sold, as these are only supposed to be sold in specialty stores. On the surface, this seems like a minor hiccup, but the promulgation of high-quality knockoffs and the availability of partially-used luxury brand items are central to a large portion of eBay's business. It seems like the loss of these two lucrative revenue streams could cost the company a great deal.
Between increased shipping rates, French courts, and its own excesses, it doesn't seem like a good time to be eBay!
Klausner Technology Inc, which has sued several companies for damages and future royalties, has settled the suits and reached an agreement Monday with Apple Inc (NASDAQ: AAPL), eBay Inc (NASDAQ: EBAY) and AT&T Inc (NYSE: T) to license its "visual voicemail" technology that sends visual alerts to computers or mobile telephones when a user has a voice message.
Meanwhile, Barron'sTech Trader Daily gave several analysts' assessments of the upcoming 3G iPhone: At RBC, they're expecting "massive" shipments of the phones in Q4; this was supported by an analyst at Deutsche Bank. The Goldman analyst didn't stop there but said he expects improvements in the iPod and Mac business segments as well.
And while Apple is increasing its global foot print, so is Yahoo! Inc. (NASDAQ: YHOO). The internet portal company said on Tuesday that its mobile search service will be offered by six more telecom companies in Asia, bringing the total to 60 partnerships with companies reaching 600 million subscribers. A Yahoo! exec said he expects the mobile advertising market to rise to $16.2 billion in 2011 up from $1.5 billion in 2006 where Yahoo! is well poised to get a large share.
But all is not rosy at Yahoo! to say the least, as is evident by the massive loss of talent. The recent is Yahoo's EVP Jeff Weiner. Yahoo's president Sue Decker has apparently emailed employees following his resignation. TechCrunch has the surprisingly cheerful and positive email.
Billboard reported last Thursday that a federal District Court in Los Angeles has denied a motion by Universal Music Group to find an eBay Inc. (NASDAQ: EBAY) seller who sold promotional CDs the label claims are its property (and thus not eligible for sale) liable for copyright infringement. UMG argued in its motion that a label printed on the discs stating they "were promotional and could not be sold" gives the holders of the CDs the right to listen only and not sell the CDs. According to the BBC, the motion from UMG was first filed against eBay seller Troy Augusto in May 2007 and resulted in the cancellation of an auction and threats from eBay.
The federal court argued that the label could not prevent that sale, and Billboard added that copyright law states "once the legal title to a lawfully made copy of a copyrighted work is transferred, then the person who obtains that copy owns it and may dispose of it." That does not mean an owner of the item can copy and sell the new version for profit ,though. Troy Augusto, the eBay seller targeted by UMG, argued to the court that the recipients of the CDs from UMG could treat the items as gifts under federal law and the court agreed with this assessment.
The yearlong affair between Universal Music Group, Troy Augusto and eBay, brings a larger question into the fold: What is the point of these promotional CDs? Before the advent of the digital market, physical copies distributed to sell new music via the radio made perfect sense, and in many ways they still do because these items are easily played on stations. But, with MP3 files and stores like Apple Inc.'s (NASDAQ: AAPL) iTunes Store leading the way for sales and marketing, could the record industry make promotional MP3s available to both radios and consumers?
MOST NOTEWORTHY: H&R Block, Talbots and SunPower were today's noteworthy upgrades:
Oppenheimer believes H&R Block (NYSE: HRB) has shown several catalysts over the past few months, most importantly the sale of its mortgage business. The firm, which upgraded shares to Outperform from Perform, believes the company's strong 2008 tax season will lead to future growth, and they think the stock can appreciate 20%+, as catalysts are not yet fully reflected in the stock.
Friedman Billings upgraded Talbots (NYSE: TLB) to Outperform from Market Perform as they believe the company has several sources of cash to avoid a liquidity crisis, charge card EPS contribution provides good visibility, improved merchandise margins, and better merchandising.
Credit Suisse raised SunPower (NASDAQ: SPWR) to Outperform from Neutral citing strength in Italy and other geographies.
OTHER UPGRADES:
Agco (NYSE: AG) was raised at Wachovia to Outperform from Market Perform.
UBS upgraded Metso Oyg (OTC: MXCYY) to Buy from Neutral.
JMP Securities upgraded SanDisk (NASDAQ: SNDK) to Market Perform from Underperform.
Stifel upgraded eBay (NASDAQ: EBAY) to Buy from Hold.
On February 1, 1960, in Greensboro, North Carolina, four African-American students sat down at a segregated lunch counter in a Woolworth's store. That touched off a series of sit-ins and boycotts that spurred the U.S. civil-rights movement.
Founded in 1879 in Lancaster, Pennsylvania, F.W. Woolworth stores were the epitome of the American five-and-dime discount retailers, and the company was one of the largest retail chains in the world through much of the 20th century.
By 1910 the company was successful enough to commission the Woolworth Building in New York City, the world's tallest skyscraper until the completion of the Chrysler Building in 1930.
Woolworth's became the model for many other five-and-dimes throughout the United States. Oddly enough, such discount stores were sometimes criticized for driving local merchants out of business, a charge that would later be leveled at big-box stores.
Do you like auctions? Personally, I don't. Sure, the stock market is essentially an auction, but it's an auction without a lot of noise (at least on my end). Anyway, this brings me to a BusinessWeek piece on eBay (NASDAQ: EBAY) and its evolution. It looks like auctions are no more fit to survive than the dinosaurs were. Research overwhelmingly shows that users of the most famous online auction destination in the world would rather pay a fixed price for an item than haggle over it like a frantic trader at a busy bazaar.
Now, as one commenter made clear in the article, this changes the essential gene structure of eBay's DNA. But is mutation necessarily bad in this case? Not to my way of thinking. To be honest, I haven't done any eBaying directly; I usually use a friend to acquire an item for me if I'm looking for something. Not only am I too lazy to open an account, but I dread having to play the auction game. Why put up with such nuisance? When I want to buy something, I don't want to compete and see values change. Think about it: when you go to Wal-Mart (NYSE: WMT), do you want to barter over a bar of soap?
Okay, so we're not talking about bars of soap. We're talking about items that, to be fair, do lend themselves to the auction motif. Comic books, autographed photos, rare recordings, and so forth, are definitely fair game for the electronic gavel. Still, it's annoying. Wouldn't you rather know that a rare copy of The Texas Chainsaw Massacre for the Atari 2600 is $200, take it or leave it, and that you didn't need to get down in the pits to start bidding for it?
While business partners eBay (NASDAQ: EBAY) and Craigslist are busy duking it out over lord knows what, Wal-Mart (NYSE: WMT) is quietly making a surprising move into the online classifieds business.
The retailer recently revealed its own online classified ad site in partnership with Oodle.com -- check it out here. According to the Wall Street Journal, the site is a pilot test with 30 million items, and financial terms of the arrangement have not been disclosed.
This raises an important question: how is the site different from Craigslist? Glad you asked: it isn't really, but it's a cleaner set-up, although Craigslist's minimalist design appears to be quite popular. Wal-Mart Classified is also really just an aggregator of ads from from tons of other sites -- nothing unique at all. The question is whether college students and recent grads (a key Craigslist market) looking for furniture or apartment rentals will really want to log-on to walmart.com to do it -- I'm skeptical.
Microsoft Corp. (NASDAQ: MSFT) shares dropped 1.77%. OK, you can say it was just as much as the Nasdaq dropped, or you can also say that no one was really impressed with the software giant's new cashback on search service.
It is no secret Microsoft is trying to boost its internet division and gain search market share. After so often being accused of being a monopoly, I guess it's hard for it to see Google Inc. (NASDAQ: GOOG) now being accused of the same in the lucrative business of internet search. Well, Microsoft tried to acquire Yahoo! Inc. (NASDAQ: YHOO), No. 2 in search (although it is also losing market share to Google) but we all know that didn't work out all that well... at least not yet. I get the feeling we haven't heard the last on that subject yet.
To address its search insufficiencies, Microsoft Wednesday rolled outLive Search Cashback, a new service that pays consumers who buy selected items from participating retailers found through Microsoft's Live Search engine. Only a portion of the purchase price, of course, between 2-30% will be paid -- via check, direct deposit to a bank account or eBay Inc. (NASDAQ: EBAY)'s PayPal. So naturally, those wishing to use the service will need to sign up and provide Big Brother with even more personal information.
No one can tell me this doesn't smack of desperation. Is Microsoft really serious in thinking this could actually make a dent in its search business? The cash rebate might attract some people, but that doesn't mean they're going to change their search habits. If anything, they might still search on Google, then go to the Live engine and find what they want there. The rest of time, I bet, Live will not be in use! Of course, the higher the cashback, the more people it will attract, but doesn't that sound a little backward? How much can Microsoft spend on that? And couldn't Google at any time counter with a similar offer should it choose to?
I'm sorry, but this just doesn't sound like it would change anything in the reality of search today.
The legal team at eBay (NASDAQ: EBAY) has been working harder than Mystic Tan guy at Angelo Mozilo's favorite salon.
First, Tiffany (NYSE: TIF) sued the company over counterfeit merchandise appearing on the auction site. Then, eBay sued Craigslist, Craigslist sued eBay, and many legal fees were spent by all. Now, eBay and its StubHub subsidiary have attracted the scorn of Chicago, which is suing the company for failing to collect the 8% amusement tax the city charges on ticket sales, including resales. Heaven forbid anyone in Chicago have fun without forking 8% over to the city. eBay says the 8% sales tax doesn't apply to it.
Chicago's city government joins Texas and New York in looking to crack down on e-commerce sites that don't collect sales tax.
It's unclear to me why the 8% amusement tax should apply to the resale of tickets online -- the tax has already been collected on that ticket, hasn't it? But bureaucrats have an infinite number of ways to make money, and that requires an ever-growing pile of money to waste. It'll be a victory for consumers if eBay emerges victorious in this battle.
Back in January, e-commerce giant eBay (NASDAQ: EBAY) announced some very controversial changes to the site that led to an uproar and seller boycotts within the eBay community. One of the most controversial changes was the decision to remove sellers' ability to leave negative feedback on the buyers, and this change is slated to start this upcoming Monday.
The decision to remove the sellers feedback has led to many eBay sellers finding alternative e-commerce sites to sell their goods, and those who remained are very worried about the impact this decision will have on their business. Sellers insist that the feedback is crucial in sifting through the large amount of buyers that give sellers hassle during transactions, but eBay feels that the change will benefit everyone on the site and prevent sellers from leaving retaliatory ratings for buyers.
The two sides just cannot see eye to eye on this one. Sellers insist that the feedback system allows the site to have a better buying community, while eBay believes that the changes are "really to make sure that we've got buyer accountability and seller accountability."
According to a BBC report, It appears that life at Craigslist has become even more interesting. As you may know, Craigslist has been embroiled in a legal tussle with Internet giant eBay Inc. (NASDAQ: EBAY). After purchasing a 28.4% stake in the company over a year ago, eBay now claims that Craigslist's founder Craig Newmark and its chief executive Jim Buckmaster have done things to disadvantage eBay's stake in the company. The BBC report didn't specify exactly what eBay claims Craiglist officials have done to "dilute" eBay's interests. Craigslist has now filed a counter suit against eBay, alleging illegal competition. You can get more information on eBay's original lawsuit here.
The BBC report states: "The lawsuit demands that eBay restore all shares of Craigslist owned by eBay or for the court to require eBay to divest its holdings in Craigslist." This demand is apparently supported by the premise that after acquiring its stake in Craigslist, eBay gleaned operating information from that company and then used it to launch Kijiji. Craigslist also insists that eBay, "[...] violated [Craigslist] trademarks and used misleading advertising on Google to run ads for its rival Kijiji site."
What a pretty picture of corporate raiding we have here. I think the outcome of this legal battle shall be dictated by two particular things. First, Craigslist will need to provide a first class package of documentation to support its legal counter claims. Second, it wouldn't hurt if it could find a judge who has been ripped off using eBay...
Back in April, eBay (NASDAQ: EBAY), which owns 28.4% of Craiglist, sued the company alleging that its board of directors (which consists only of founder Craig Newmark and CEO Jim Buckmaster) had attempted to dilute eBay's stake to just 10%.
Well, Craigslist wasn't having any of that. It filed a lawsuit accusing the company of interfering with its business operations, unfair competition by using its proprietary information, and infringing its trademark to attract visitors to eBay Web sites. The suit was filed yesterday in California Superior Court in San Francisco.
Apple Inc. (NASDAQ: AAPL) was the big winner among only four that had appreciated. The following indicates commonly used metrics for tracking and comparing stocks.
Reviewing the stocks in order of lowest to highest P/E ratio (TTM):
It is interesting to note that only two of the eight have a below market P/E ratio, while only two are average. On the other hand, four are double the average and beyond, which leads me to believe the overall market consensus is that it is still very early in the game for these stocks and their futures are yet to be determined. The P/E ratios of the four are also the most volatile as are the stock prices.
The New York Times reports that eBay is considering making PayPal the only form of payment allowed on eBay auctions. The company is test marketing this concept in Australia starting next month, and loyal eBay buyers and sellers there are furious.
eBay's stranglehold on internet auction enthusiasts is already clear. It is the most popular auction site, and if you're a seller, you have few other choices that get you as much exposure. But that's not enough for eBay. In addition to all the fees generated from auction listings and sales, they apparently want to ensure that they'll get extra fees from the payments if they require everyone to pay with PayPal.
Company officials say this move is an effort to cut down on fraud. They say that by requiring the use of PayPal, they are able to see buyers and sellers through the payment process, rather than them risking fraud through the use of outside payment services.
eBay, Inc. (NASDAQ: EBAY) closed at $27.61:
Over the years, eBay (NASDAQ: EBAY) has overcome numerous adversaries, from customer fears about online purchasing to the very real threat of physical retailers. It has defeated or absorbed dozens of competitors, constantly morphing to offer fresh services to its users while continuing to draw a hefty profit. However, as Gary Sattler recently noted, eBay's unbelievable success may have begun to sow the seeds of its downfall. Once a counter-cultural answer to the monopoly (and monotony) of physical retailers, the online giant has become the dominant culture. Moreover, it's monopoly of online marketing and apparent lack of concern for its users have resulted in massively increased prices and fees, driving many of its sellers right out of the market. 
Before the bell: Futures higher ahead of Goldman, PPI, housing data
Billboard reported last Thursday that a federal District Court in Los Angeles has denied a motion by Universal Music Group to find an eBay Inc. (NASDAQ: EBAY) seller who sold promotional CDs the label claims are its property (and thus not eligible for sale) liable for copyright infringement. UMG argued in its motion that a label printed on the discs stating they "were promotional and could not be sold" gives the holders of the CDs the right to listen only and not sell the CDs. According to the BBC, the motion from UMG was first filed against eBay seller Troy Augusto in May 2007 and resulted in the cancellation of an auction and threats from eBay.
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MOST NOTEWORTHY: H&R Block, Talbots and SunPower were today's noteworthy upgrades:
This post is part of a series on some of the most memorable companies that have disappeared.
Do you like auctions? Personally, I don't. Sure, the stock market is essentially an auction, but it's an auction without a lot of noise (at least on my end). Anyway, this brings me to a BusinessWeek piece on eBay (NASDAQ: EBAY) and its evolution. It looks like auctions are no more fit to survive than the dinosaurs were. Research overwhelmingly shows that users of the most famous online auction destination in the world would rather pay a fixed price for an item than haggle over it like a frantic trader at a busy bazaar. 
The legal team at eBay (NASDAQ: EBAY) has been working harder than Mystic Tan guy at Angelo Mozilo's favorite salon.
Back in April, eBay (NASDAQ: EBAY), which owns 28.4% of Craiglist, sued the company alleging that its board of directors (which consists only of founder Craig Newmark and CEO Jim Buckmaster) had attempted to dilute eBay's stake to just 10%.
About a month ago I posted Serious Money: AAPL, EBAY, GE, GOOG, MSFT, TWX, WMT, YHOO -- one more look, covering the original Great Eight stocks we focused on at BloggingStocks. These were based on reader interest, which they do still generate today.
The New York Times reports that eBay is considering making PayPal the only form of payment allowed on eBay auctions. The company is test marketing this concept in Australia starting next month, and loyal eBay buyers and sellers there are furious.
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