Wednesday, November 12, 2008

eBay Shares at Auction Prices

It's the law of large numbers: It is impossible for a company to keep growing at a fast clip once it becomes very large. But few expected to hear that eBay's sales in its core auction segment might actually shrink, as is implied by near-term management guidance. Yet that appears to be a possibility in 2009, especially in the first half of the year. That helps explain why shares have fallen more than 60% from their 52-week high and I dont see a turn-around before the years out. PayPals continued problems is not helping either! eBay will celebrate the New Year below the $10 mark!