Liquidate Your Crap At Below Wholesale Prices Dept: eBay Q2 ASPs fall 6% Y/Y

[mandy]

eBay reports Q2 2008 earnings up 22%, Wall Street not impressed, stock falls 7% in after hours trading

eBay reported financial results for its second quarter ended June 30, 2008, posting second quarter revenue of $2.20 billion, up $361 million from the same period last year. Net income on a GAAP basis was $460 million. Gross Merchandise Volume for the Marketplaces business was $15.68 billion for the quarter, an increase of 8% over the second quarter of 2007.

The Marketplaces business unit, which consists of eBay, Shopping.com, StubHub, Kijiji and other ecommerce sites, generated $1.46 billion in revenue, equating to 13% year-over-year growth. The business unit saw strong growth in advertising, StubHub and classifieds. The company's global classifieds businesses averaged 81 million unique visitors per month during the quarter, representing an increase of 121% year-over-year. Fixed price listings accounted for 43% of global GMV...

full article: http://www.auctionbytes.com/cab/abn/y08/m07/i17/s01

It's not a bad week for eBay.

First the company defended itself successfully against a trademark lawsuit filed by jeweler Tiffany, and now the company has said that profits jumped 22 percent from last year. None of this impressed Wall Street much.

The Web's largest online auctioneer said after the close of trading Wednesday that second-quarter net earnings grew to $460.3 million, or 35 cents a share, up from $375.8 million a year ago. The boost came from an increase in item listings and sales growth at the company's PayPal division...

full article: http://news.cnet.com/8301-1023_3-9992760...g=nefd.top

[mandy]

Wall Street's reaction:

GMV growth of 8% year-over-year is 400 basis points lower than the previous quarter. He says there were two reasons for the “horrid” growth: deteriorating consumer spending patterns reduced conversion rates and average selling prices, and growth in the Motors segment “fell off a cliff.” Boyd writes that he wonders if a 0% growth quarter, or even a negative growth quarter, could be coming soon. “In this market environment, cheap stocks can and will get cheaper in a hurry if they don’t deliver good news,” he writes...

Today so far, eBay shares have tumbled $4.30, or 15.3%, to $23.80.

full article: http://seekingalpha.com/article/85510-eb...ource=feed

Deutsche Bank (Jeetil Patel) - Jeetil has had a sell on eBay for as long as I can remember and has cited traffic trends, GMV growth, marketing costs and active user deterioration as reasons that the eBay model is broken.  Jeetil also closely follows Amazon's 3P business and reports that eBay's pain is Amazon's gain.  If ecommerce is growing at 15-20% and eBay's growing at 4%, where is that 11-16% going - Amazon? In today's note, JP re-iterates his sell and notes: "We think eBay faces structural issues that may lead to significant operating margin contraction, if the company needs to spend in ads/demand growth, lower seller fees and re-invest in R&D (interface). Note the strategy of increasing sellers fees and couponing has not improved underlying metrics, while recent initiatives may not be enough to carry the business in '08."  Jeetil put a $22 value on the stock - which is a street low...

full article: http://ebaystrategies.blogs.com/ebay_str...-on-p.html