eBay’s second-quarter earning report was respectable, all in all, with increases occurring in most measurable categories. Many of those increases didn’t meet investors’ expectations, though, and the company seems to have adopted a cautious outlook for the future.
The end (or at least current) result: eBay’s stock is down 15.70 percent so far today, even as the rest of the market has more or less remained steady. Also, “Re: EBAY IS A JOKE” stands as the top discussion title on Google Finance. This isn’t the sort of thing that can make John Donahoe, the company’s new-ish CEO, comfortable.
eBay’s Stock Slides
Let’s get to the report’s numbers, then. Pia Sarkar writes, “Gross merchandise volume – the total value of all goods sold on eBay – totaled $15.68 billion, an increase of 8% over the same period last year but a drop from the 12% year-over-year growth seen in the first quarter. . . . Although eBay’s listings swelled by 19% from a year ago, the number of active users increased by only 1%.”
That second trend, at least, would appear to speak to eBay’s new habit of embracing big, powerful sellers instead of its traditional fan base. We’re sure some of those former fans are having a good laugh right now.
On the other hand, Donahoe was able to state, “We have made bold moves across the eBay marketplace to accelerate long-term growth. We remain confident in our strategies to improve the customer experience as we manage in an uncertain economic climate.”
