IB Net Payout Yields Model

eBay: Too Pessimistic On Split

eBay tanked following PayPal reporting weak TPV numbers for the online merchant.
The online retailer has only started the process of managed payments that removes PayPal from the process.
The stock is incredibly cheap with no actual confirmation that GMV will be weak due to the payments transition.
eBay (EBAY) plunged 9% on Friday as the market reacted to GMV numbers provided by PayPal (PYPL). Considering eBay is in the process of implementing managed payments that removes PayPal from the process, investors need to be careful with data from a potentially unhappy partner. My investment thesis remains bullish.
Read the full article on Seeking Alpha. 

Disclosure: Long EBAY. Please review the disclaimer page for more details. 


Anonymous said…
The warning from Paypal is just the tip of the eBay Titanic. The iceberg is looming up ahead and the delay from eBay on announcing its 3Q earnings - should speak VOLUMES.

The %.2 savings to sellers, in real terms means very little. It wont spur ANY new growth, its NOT spurring any new growth - and the role out was backasswards.

This is what happens when the BOD and the CEO have ZERO background in ecommerce, etail, retail, wholesale or mail order.

Read eBays own forum, they are CHOCKED full of angry sellers who want to leave, some who are leaving and the same few issues crop up over and over again - ALL driven by eBays "I dont give a damn attitude" towards sellers and their issues.

eBay steam rolls over smaller sellers like a run away train and until eBay fires the ridiculous CEO - whos more interested in his house in the Hamptons then goings on in San Jose - nothing will change.

Fraud, theft and abuse of sellers is RIFE on eBay, eBays lies (to the courts and to others that "that "we are just a venue") has become the running punch line of ecommerce.

eBay wants to control the product stream but cant, wont invest in anything or anyone and so the laughs continue.

Slapping a fine on sellers thta eBay doesnt like, charging a revenue for things like shipping that it has nothing to do with - in the real world - shouldnt even count as REVENUE.

eBays numbers are %100 contrived - and THAT is why eBays Q3 numbers will be disappointing.

As for its Paypal problems, its had years to figure out solutions but waited till the last moments of the 4th quarter of the game to come up with a play + they spent 10+ yrs and many millions telling anyone who will listen - Paypal is the ONLY and best way to pay on the net .......

No ones ever heard of Adyen ....... bail on eBay stock NOW - the emporer truly has no new clothes!

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