| | |
07-21-2017
| Senior Member | | Join Date: Jan 2010
Posts: 750
Thanks: 3
Thanked 18 Times in 15 Posts
Activity: 0% Longevity: 82% | | EBay’s Shares Tumble on Disappointing Forecast
Jul 20, 2017
EBay on Thursday forecast current-quarter profit largely below analysts' estimates, as it continues to invest in marketing as well as in revamping its platforms to attract more shoppers, amid stiff competition from Amazon.com.
EBay has poured millions of dollars into sales and marketing, running TV and social media campaigns, as it tries to promote its revamped platform as well as shed its image of an auctions website.
The company has also invested in product development, tweaking its websites to set a new home page, promote seller listings and remove stagnant ones.
Sales and marketing costs rose 2.4% to $637 million in the second quarter ended June 30, while product development expenses increased 6.1% to $313 million.
San Jose, California-based eBay forecast third-quarter adjusted earnings of 46 to 48 cents per share. Analysts on average were expecting 48 cents per share, according to Thomson Reuters I/B/E/S.
Net income fell to $27 million, or 2 cents per share, in the second quarter ended June 30, from $435 million, or 38 cents per share, a year earlier.
During the quarter, the company recorded an income tax provision of more than $400 million, which dented profit.
Excluding one-time items, eBay earned 45 cents per share, in line with analysts' estimates.
Get Data Sheet, Fortune’s technology newsletter.
Revenue rose 4.4% to $2.33 billion, beating analysts' estimates of $2.31 billion.
EBay also announced a $3 billion share repurchase program.
Shares of the company, up about 25% so far this year, dipped 2.4% to $36.30 in after-hours trading on Thursday.
|
The complete step-by-step guide to get back to selling today!
| |
07-21-2017
| | Banned | | Join Date: Mar 2015
Posts: 3,138
Thanks: 44
Thanked 667 Times in 486 Posts
Activity: 0% Longevity: 52% | | Re: EBay’s Shares Tumble on Disappointing Forecast |
07-21-2017
| | Executive [VIP] | | Join Date: Nov 2015
Posts: 10,834
Thanks: 2,079
Thanked 4,025 Times in 3,012 Posts
Activity: 4% Longevity: 48% | | Re: EBay’s Shares Tumble on Disappointing Forecast
I think they have infinite growth potential but they have no idea how to go about growing.
__________________ ____________ _______ ___ |
07-21-2017
| Senior Member | | Join Date: Apr 2017
Posts: 619
Thanks: 47
Thanked 69 Times in 57 Posts
Activity: 0% Longevity: 40% | | Re: EBay’s Shares Tumble on Disappointing Forecast
I just started seeing eBay commercials, never seen those before.
I'm amazed at how Amazon has just ballooned into what it is today. Amazon Prime, firestick, Amazon lockers, drone delivery... they've gotten so massive.
|
07-21-2017
| Senior Member | | Join Date: Apr 2015
Posts: 145
Thanks: 30
Thanked 8 Times in 8 Posts
Activity: 0% Longevity: 52% | | Re: EBay’s Shares Tumble on Disappointing Forecast
eBay will eventually disappear or be bought by Amazon.
|
07-21-2017
| Executive [VIP] | | Join Date: Dec 2010
Posts: 3,503
Thanks: 254
Thanked 815 Times in 600 Posts
Activity: 0% Longevity: 77% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by kvncsta eBay will eventually disappear or be bought by Amazon. | amazon wont be even touching them, anti-trust issues.
| The Following 2 Users Say Thank You to yotano211 For This Useful Post: | |
07-21-2017
| | Super Moderator | | Join Date: Jul 2008
Posts: 15,954
Thanks: 321
Thanked 2,547 Times in 2,200 Posts
Activity: 56% Longevity: 91% | | Re: EBay’s Shares Tumble on Disappointing Forecast
I highly doubt eBay is going anywhere... yes, Amazon is phenomenal, but eBay still has its uses on other type of selling.
They are different than Amazon.
|
07-21-2017
| Junior Member | | Join Date: Apr 2015
Posts: 481
Thanks: 14
Thanked 61 Times in 56 Posts
Activity: 5% Longevity: 52% | | Re: EBay’s Shares Tumble on Disappointing Forecast
If I were marketing for eBay I would do more specialization in formatting. Many people look at eBay as one of two things, auction housing or discount goods. They've been that way since the creation. Amazon will never have the used niche that eBay has. It will only maybe have it in textbooks.
Now how do you realize the potential of your strengths? You promote the eBay bucks and speed of shipment like they have been doing. You could make auctions more interactive, also. But the mega key that eBay will forever overlook is the giant in the room. Kick off all of the Chinese sellers that clearly break TOS and allow American sellers to fill it. You will kill off probably 25 percent of your cases and increase your customer satisfaction and speed by that much as well. This could lead to a reduction in staffing and major cost with the replacement of the lost revenue coming in from new sellers. You basically kill two birds with one stone.
|
07-22-2017
| | Senior Member | | Join Date: Sep 2010
Posts: 2,340
Thanks: 659
Thanked 444 Times in 346 Posts
Activity: 0% Longevity: 79% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by vettefever17 If I were marketing for eBay I would do more specialization in formatting. Many people look at eBay as one of two things, auction housing or discount goods. They've been that way since the creation. Amazon will never have the used niche that eBay has. It will only maybe have it in textbooks.
Now how do you realize the potential of your strengths? You promote the eBay bucks and speed of shipment like they have been doing. You could make auctions more interactive, also. But the mega key that eBay will forever overlook is the giant in the room. Kick off all of the Chinese sellers that clearly break TOS and allow American sellers to fill it. You will kill off probably 25 percent of your cases and increase your customer satisfaction and speed by that much as well. This could lead to a reduction in staffing and major cost with the replacement of the lost revenue coming in from new sellers. You basically kill two birds with one stone. | ebay bucks. a whopping 1%!!! WOOOO!!!! Time to SHOP TILL I DROP!!! lol.
sorry. Sore spot for me.
They used to have 2% and up to 8%. I used to make an extra $500 a quarter just for buying. Now? $50?
|
07-22-2017
| | Executive [VIP] | | Join Date: Dec 2009
Posts: 76,022
Thanks: 5,943
Thanked 8,925 Times in 8,217 Posts
Activity: 100% Longevity: 83% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by kvncsta eBay will eventually disappear or be bought by Amazon. | Hah highly unlikely
|
07-22-2017
| | Executive [VIP] | | Join Date: Nov 2013
Posts: 8,983
Thanks: 2,744
Thanked 3,109 Times in 2,282 Posts
Activity: 0% Longevity: 60% | | Re: EBay’s Shares Tumble on Disappointing Forecast
Ebay has become again a yardsale for Chinese sellers. Years ago it was littered with keyword abuse and the search function was worthless. This is similar these days.
If the USA renegotiates NAFTA and eliminates chinese shipping subsidies for third party sellers in china, this will wipe out most of the cheap items because shipping will be a more level field.
The other thing ebay fails to do is market to sellers how the platform can be unique and interactive compared to amazons catalogue and web hosted crappy pictures.
| The Following User Says Thank You to yankee For This Useful Post: | |
07-22-2017
| | Senior Member | | Join Date: Sep 2010
Posts: 2,340
Thanks: 659
Thanked 444 Times in 346 Posts
Activity: 0% Longevity: 79% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by yankee Ebay has become again a yardsale for Chinese sellers. Years ago it was littered with keyword abuse and the search function was worthless. This is similar these days.
If the USA renegotiates NAFTA and eliminates chinese shipping subsidies for third party sellers in china, this will wipe out most of the cheap items because shipping will be a more level field.
The other thing ebay fails to do is market to sellers how the platform can be unique and interactive compared to amazons catalogue and web hosted crappy pictures. | If we eliminate Chinese subsidies ( and increase import taxes), it's going to create a lot of havoc. But man, the effects on US business once the dust clears, will be amazing.
|
07-22-2017
| Junior Member | | Join Date: Jul 2017
Posts: 1
Thanks: 0
Thanked 0 Times in 0 Posts
Activity: 0% Longevity: 39% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by kirkland I just started seeing eBay commercials, never seen those before.
I'm amazed at how Amazon has just ballooned into what it is today. Amazon Prime, firestick, Amazon lockers, drone delivery... they've gotten so massive. | They ballooned by inviting sellers seeking refuge from Ebay to their "market place" and then stealing all their sales data to sell the popular items they sold themselves and then booting them off Amazon if they really were successful to avoid competition. Stealing business sales data and pretty much becoming the Chinese dollar store is what makes Amazon wealthy. If it wasn't for their shady business practices they would still be just another online bookstore.
Every imitation knockoff of a legit product you can find rampant on their website for cheap and people buy it up. The top selling items on their website when it comes to merchandise is always some alibaba crap. Plus now that people just branch of Ebay and Amazon when it comes to running a business only puts them at their mercy instead of opening up an Online store and making Amazon and Ebay have to compete with the inventory of thousands of businesses they put those businesses under their roof so they don't have to worry about competition and basically can end those shops any time they want as many people here have learned the hard way.
They're pretty much unstoppable now. The only thing that can really hurt them is some sort of Embargo act making it harder for those Chinese goods to be sold in the U.S. That would hit ebay and Amazon hard but would be profitable for US sellers |
07-22-2017
| Junior Member | | Join Date: Apr 2015
Posts: 481
Thanks: 14
Thanked 61 Times in 56 Posts
Activity: 5% Longevity: 52% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by james13v ebay bucks. a whopping 1%!!! WOOOO!!!! Time to SHOP TILL I DROP!!! lol.
sorry. Sore spot for me.
They used to have 2% and up to 8%. I used to make an extra $500 a quarter just for buying. Now? $50? | I know the EXACT thing you're talking about. I used to buy and flip textbooks and use the eBay bucks to buy essentially free silver American eagles. haha
| The Following User Says Thank You to vettefever17 For This Useful Post: | |
07-22-2017
| Junior Member | | Join Date: Apr 2015
Posts: 481
Thanks: 14
Thanked 61 Times in 56 Posts
Activity: 5% Longevity: 52% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by yankee Ebay has become again a yardsale for Chinese sellers. Years ago it was littered with keyword abuse and the search function was worthless. This is similar these days.
If the USA renegotiates NAFTA and eliminates chinese shipping subsidies for third party sellers in china, this will wipe out most of the cheap items because shipping will be a more level field.
The other thing ebay fails to do is market to sellers how the platform can be unique and interactive compared to amazons catalogue and web hosted crappy pictures. | That mega gap in profit margin is the killer for a lot of business in the U.S. You can only take USPS discounted shipping so far. Not to mention the vast exchange advantages for the yuan to U.S. dollar.
I am just more shocked at the sheer abuse some Chinese seller with low feedback and extremely poor sales get away with. I almost think eBay has programmed the algos to not touch them in certain aspects.
|
07-22-2017
| | Banned | | Join Date: Mar 2015
Posts: 3,138
Thanks: 44
Thanked 667 Times in 486 Posts
Activity: 0% Longevity: 52% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by vettefever17 That mega gap in profit margin is the killer for a lot of business in the U.S. You can only take USPS discounted shipping so far. Not to mention the vast exchange advantages for the yuan to U.S. dollar.
I am just more shocked at the sheer abuse some Chinese seller with low feedback and extremely poor sales get away with. I almost think eBay has programmed the algos to not touch them in certain aspects. | That's just ridiculous idea that eBay is bias for Chinese sellers...
__________________ How to use Paypal correctly Run multiple portable Firefox, 1 user account How to add new PP to eBay |
07-23-2017
| | Executive [VIP] | | Join Date: Sep 2010
Posts: 14,302
Thanks: 1,110
Thanked 4,934 Times in 3,399 Posts
Activity: 0% Longevity: 78% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by empirestate That's just ridiculous idea that eBay is bias for Chinese sellers... | As crazy as that sounds, it doesn't seem too far a stretch.
|
07-23-2017
| Executive [VIP] | | Join Date: Nov 2012
Posts: 3,108
Thanks: 412
Thanked 672 Times in 497 Posts
Activity: 9% Longevity: 66% | | Re: EBay’s Shares Tumble on Disappointing Forecast
It really seems to depend on what you are selling. Personally I have seen many more individuals start selling products on eBay again because everything is being Gated off on Amazon. I do agree Amazon is still right now king but with all the Third Party Sellers becoming essentially blocked expect to see prices on Amazon rise for Branded Goods and eBay to have a bit of a resurgence for those with established accounts in good standing.
The Amazon customer is definitely less price sensitive but I doubt they will be as price insensitive when the price hikes take place. I don't expect this to affect Private Label. But don't be surprised to see eBay making a comeback. What Amazon is doing is exactly what happened on Bay in like 07-09 they were king then just started throwing everyone off with no explanation. Then Amazon took over and in many ways is following a similar path.
|
07-23-2017
| | Senior Member | | Join Date: Sep 2010
Posts: 2,340
Thanks: 659
Thanked 444 Times in 346 Posts
Activity: 0% Longevity: 79% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by MM78 As crazy as that sounds, it doesn't seem too far a stretch. | I'm pretty sure he was being sarcastic lol
|
07-23-2017
| | Senior Member | | Join Date: Sep 2010
Posts: 2,340
Thanks: 659
Thanked 444 Times in 346 Posts
Activity: 0% Longevity: 79% | | Re: EBay’s Shares Tumble on Disappointing Forecast |
07-23-2017
| | Executive [VIP] | | Join Date: Nov 2013
Posts: 8,983
Thanks: 2,744
Thanked 3,109 Times in 2,282 Posts
Activity: 0% Longevity: 60% | | Re: EBay’s Shares Tumble on Disappointing Forecast Quote:
Originally Posted by empirestate | They do have less legal issues. My Chinese sellers can sell items from abroad that I can not in the USA without a patent infringement. My market is very nitch but the same concept applies across the entire platform.
|
Posting Rules
| You may not post new threads You may not post replies You may not post attachments You may not edit your posts HTML code is Off | | | |