As I read the news wires and various blogs about eBay, I have been stumbling upon more bits of information that lead me to believe that eBay's investors are concerned about the way they are handling competition. I know that is not a huge revelation for a publicly traded company, but this might be new territory for eBay.
Check out this post from Blogging Stocks, here is a taste:
As a major contributor to eBay's (EBAY) revenue, it might be understandable why eBay tries to force PayPal as a payment system. However, going head-to-head with other companies may not be the right way to go about securing PayPal business, especially not when Google Inc (GOOG) has options in its arsenal to hurt eBay where it matters - referrals.
PayPal should probably concentrate on improving their product vis-a-vis the competition rather than using (stooping to) such tactics. Not only can these tactics backfire, but they also don't give investors confidence in eBay and PayPal's ability to deal with competition.
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