Investor Feedback for eBay: Awful Seller. Would Not Buy From Again. F-.
The deepening recession is playing havoc with eBay’s now nine-month-old turnaround strategy. While the company beat Wall Street’s lowered expectations for its third quarter Wednesday, it also updated it’s guidance to better reflect “current business trends.”
And “current business trends” being what they are, that guidance falls somewhere between lousy and repellent. In other words, eBay (EBAY) believes its full-year revenue will fall short. And with a 1 percent year-over-year drop in gross merchandise value–the total value of all goods sold on the site–during the quarter, there’s little reason to question that forecast. “These are turbulent times for which no one has the perfect playbook,” said eBay CEO John Donahoe. “There is a high degree of economic uncertainty and turmoil in the business market and that is impacting consumer spending.”
Impacting eBay’s stock too. Shares in the company have lost more than half their value (54 percent) since April.