eBay Outlook: Bullish vs. Bearish

[mandy]

The bearish view:

Already, there are alternatives in the form of Overstock.com (Nasdaq: OSTK) auctions and uBid auctions, just to name a few. eBay has the vaunted network effect that lets it stay No. 1, for now -- yet if it keeps actively upsetting its sellers, that advantage may well evaporate.

To be successful growing at this point, eBay needs to both successfully defend its base market and figure out the right way to compete in new arenas. In the context of a competitive environment, those price hikes don't help it defend its turf very well. Additionally, the flop of eBay Express should make a great case study of what not to do. After all, when you think of online fixed-priced purchases, you probably think of Amazon.com (Nasdaq: AMZN). What makes eBay Express a better destination for shoppers than Amazon? Perhaps for a few "can't find it anywhere -- gotta have it now" items such as Sony's (NYSE: SNE) PlayStation 3, eBay Express makes sense. For everything else, why take the risk of an unknown and potentially untrustworthy individual seller, when you can get the reputation of Amazon to back up your purchase?...

full article: http://www.fool.com/investing/general/20...-bear.aspx

The bullish view:

...nearly every so-called problem facing eBay (Nasdaq: EBAY) is a matter of deliberate strategy.

Price hikes? CEO Meg Whitman isn't just trying to raise revenue; she's trying to thin out low-margin eBayers who undercut the power sellers who really drive growth for the auctioneer. If anything, eBay is making a short-term sacrifice that should boost margins over the long term. Tell me again why that's a problem?

And let's talk China. eBay hasn't abandoned the Sino superpower. Instead, it's creating a joint venture...

full article: http://www.fool.com/investing/general/20...uttal.aspx

[thentavius]

What happens if you can see both views overlaid on top of each other?

Do I need therapy?

LOL.

Although, knowing eBay, I would have to assume the bullish view is more accurate. *insert the smoking man here*

[BellisimaJ.]

I advocate the bearish view.