Quote from gaj:
mecro - yes, i've used ebay. i knew about ebay before meg took over at ebay, and know many dealers who are both on and NOT on ebay.
the % of people who were full time people on ebay and happy with it has been dropping considerably over the past 3 years. some of this is because of the increase in fees; some of it is from people who don't realize that as ebay gets larger, the prices realised (ie. market inefficiency) gets smaller...but most of it is because at every opportunity, ebay does something to screw things up. i'd suggest taking a look at theauctionguild.com to see some examples of it.
for example, checkout; the number of lies stated by ebay reps *on a weekly basis* was amazing.
>Oh and in case you did not realize, Ebay acquisitions >are to kill off whatever competition they may have had.
yes, i know that. but overpaying every time, and threatening lawsuits without basis isn't the way to a successful operation...
paypal's problems existed well before ebay, unfortunately; they have about 2 customer service reps who are out of this world outstanding, and a bunch of others who aren't qualified to flip burgers.
>Of course this is all assuming that we can trust Ebay's #s.
based on numbers i do know...nearly every 'metric' they provide is substantially inflated. the only number i'd trust is the profit for the quarter - and then adjust that for options, while insiders are frantically dumping..
they'll definitely be a survivor. but only a few analysts know the rest of the story, and they're not going to tell about it...
I do not disagree at all. As someone who knows Ebay quite well, I will comment with
Ebay has been getting bigger, hence more problems. In their credit, their customer service has been excellent considering their growth and power (they aren't struggling for buyers or sellers). The fees are turning off the small sellers, but Ebay is aiming for larger retailers nowdays, hence, just like you said, naturally raising the Ebay market prices for most items.
I personally do not like that move, but I see their perspective. However, I think that might bring them down in a few years as it would make little sense to use Ebay for personalized service, fast shipping and below retail prices for brand new items.
Ebay acquisitions are questionable but they make a lot of sense. It's not like Ebay was the only one trying the internet auctions and in the early phases, it is not that hard to run a good auction website. The payment services acquisitions are key, even with overpaying. Paypal is booming. However, unless Ebay turns Paypal back around in regards to ridiculous fees, pathetic customer service and some of the most idiotic security measures, it might turn out bad. Paypal practically owned a year ago, but now as their quality just dropped, competition is coming back again (Im considering switching)
Do I think Ebay is overvalued? Hell yes. I wish I could get some but I'm not paying that ridiculous price. But shorting it is another story. Not worth the risk at all. In this market, there are very few stocks like Ebay. If you want to keep your money in the market, Ebay is one of the best choices, even if it is overvalued.
Speaking of cult stocks, short DELL. This piece of shit company is a freaking joke. Horrible marketing strategy nowdays, as well as a horrible product. They appeal to first time buyers (little or no profit) with hopes of making return buyers since they sell POS computers for dirt cheap that break down or if you're lucky become obsolete. Yet their tech support is now outsourced in India where they got some heavy Indian accents reading from scripts. Make a lot of sense, since first time PC buyers are so tech savy.
