eBay Stock Volatility Forecasted

Reuters today forecasted strong volatility in the price of eBay shares as the July 19th earnings report is released. In typical eBay fashion, execs announced a "Save 50% of Powerful Listing Upgrades" sale for two days on the 11th & 12th. Whether the earnings report is up or down, one thing that can be assured is that eBay will use the statistics from the period of this sale as the basis for their current trends in listings and revenue.

Wall Street, unlike the general population of eBay users, only cares about the numbers - no matter how eBay arrives at those numbers. It's like a politician scheduled to visit a third world country and the leader of the country feeding everyone for a week before hand. When the politician arrives after being disconnected from the situations in the country he sees happy people with full bellies and proclaims everything wonderful.

To those who are at least a bit in-the-know, the upgrade sale is yet another slap in the face. The sale discounts features that are over-priced and over-hyped by ebay and that are really not used that much by the sellers on the site in the first place. Multi home-page featured upgrade only will cost $40 instead of the usual $80. There is also an insertion sale for eBay motors, but with many stipulations and restrictions.

We at FireMeg.com will be anxiously awaiting to numbers that will be released in a week. The numbers that don't lie are the average number of listings on the site, which have recently dropped to 2003 levels.....right where the stock price has been for the past week, at 2003 levels.
FireMeg.com