eBay Strategies friend, UBS's Ben Schachter, lowered his eBay price point from $35 to $28 today which put some pressure on the stock. He cited concerns over:
1. The core business
2. Paypal off ebay showing more traction
3. Skype
On the core business he said: "In order for eBay’s stock to work, we think investors will need to see reacceleration or at least stabilization in the core business..."
This got me thinking, there's all this talk on core is slow/broken/etc. (even from the eBay camp), but what's really going on here?
I dug into the plethora of Q2 analyst reports and wanted to highlight some of their data/findings in this post. Then over the rest of the week, I thought it would be fun for us to brainstorm on creative ways eBay could "fix core".
What I found in the eBay macro-economics is:
- Buyers are deactiving at a growing clip
- Conversions are decreasing (most sellers would tell you ASPs are decreasing in their category too)
- GMV/listing is decreasing
- revenue/listing is decreasing
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