posted on September 30, 2001 09:52:21 PM new
"An excellent job of distorting the facts, quickdraw2999...yielding a net loss for the quarter of only $27.5M, not the $231M figure claimed above."
I didn't say the losses were for last quarter, the statement was to imply since inception. But last quarter they still lost $27.5 million and they say they expect to keep losing money through next year.
Why would an unprofitable company go public, did they not learn from the last internet bubble burst? I'm guessing they want to take advantage of the auction craze before it drops off completely.
Which takes me to Pocono's statement that ebay is close to being a thing of the past. Comparing my regular auctions to my BIN listings, I'm having more success with BINs. I guess people are tired of being outbid, or waiting for the end of auction. They just want to buy the item and get the transaction over with. BINs will probably increase while auctions may only represent 25% of ebay's sales. If that came true, I wonder if ebay will have the same appeal!
posted on September 30, 2001 10:12:11 PM new
I found the info on a note that blew in my backyard against a tree. Actually from the auctionbytes newsletter:
posted on September 30, 2001 10:30:33 PM new
You say, they say they expect to keep losing money through next year You offer a link saying it contains, PayPal has lost $231 million since its inception and expects to lose more next year
Strange, I look at the link you provide and I see this:
warned in the prospectus that the red ink is expected to continue at least through the rest of this year.
Maybe you don't see the difference, but there is a big one to me.
posted on October 1, 2001 12:32:24 AM newonecentmusic, The words "stupid" and "idiotic" were not referring to you, nor to any other person in this thread. I do not make personal attacks against other persons, but I am not shy to shoot holes in their arguments if I find them lacking (their arguments, not the person). And that after all is the entire purpose of this board. Agree. Disagree. Doesn't matter. As long as it is done respectfully. But respect does not mean being timid in contructing one's ideas, or in disassembling the ideas of others.
Still, I do think that spending $48K to get 1.6M customers (net cost of 3 cents per customer) makes much better use of limited financial resources than spending $98 per member to acheive the same results. And spending between $50 to $250 per head captured is not at all unusual in the tech industry.
celebrityskin, The person with 50K+ feedback is known on this board as "Jereth" and signs her posts as "Marie". Not only does she accept PayPal, she appears to be "PayPal Preferred", i.e. she doesn't offer BillPoint in her very customer-friendly ads. The previous poster to this thread is an eBay newbie with only a handful of feedbacks.
quickdraw29, With all due respect, your initial post to this thread *WAS* misleading, whether intentionally or not.
"Paypal loses $231 million... and they expect to lose more next year."
A reasonable person would interpret this to mean that the $231M and the "next year" are both referring to equivalent time periods, not "since the beginning of time" and "next year". Comparing the $231M to "next year" is like comparing apples to orchards.
Your statement basically reads "PayPal lost $231M last year, and who knows how much next year." This may not have been your intent, but that's the way it reads to others. And as has been pointed out by another poster, PayPal nowhere gives financial projections for next year, only through the end of this year.
posted on October 1, 2001 07:54:22 AM new
Stormthinker, there's no reason why anyone should interpret that to mean this year loses. Paypal started less than two years ago and now they filing for an IPO, one would gather the cumulative loses it made since it started. Wouldn't that have been stupid to report only this years loses? That to me would have been misleading. Anyway, it's been pointed out and everyone is clear on it, and that's what discussion boards are for.
uaru, their revenue went up over 1000% from the previous year but their loses only went down 20%. That will obviously take more than three months to get in the black, still they're not going to see the same explosion in revenue over the next year.
posted on October 1, 2001 08:44:41 AM new
Quickdraw29,
No problem in posting on the numbers mean to you and your predictions. What I objected to was your post that stated, "they say they expect to keep losing money through next year."
PayPal did not say that, nor have I seen any other financial site say such a thing, you did, I wanted that cleared up.
posted on October 15, 2001 01:11:07 AM new
To Whomever,
The thing that has me laughing about all this is that Paypaldemon usually responds to most posts. But how come when the topic of Paypal's financial losses come up he is very quite??
He can tell me to forget the $2,700 that was defrauded from me via paypal, but he can't say a damned word when it comes to how much money paypal losses. Are you even sure that paypal is even losing this money, or is it going somewhere else?
The money I put many buyer complaints through, I wonder if so paypal recovered the funds from the seller, and kept it for themselves. They either are pulling many scams in order to retreive there "LOST" money or are just plain lowsy in taking care of business.
posted on October 15, 2001 03:55:00 AM new
Look at the numbers and do the math. They spend more than they take in. All this means is that they can do so only until the bottom drops out of the market and they lose enough business so that their creditors come after them. Once they go Chapter 11, I doubt a single seller will keep any money in a PayPal account. I give them 6 months to one year especially when even Personal acocunt users start getting upset over increasing restrictions.
posted on October 15, 2001 08:08:13 AM new
paypal should get these personal account converted to commercial or business accounts.
if these accounts want to accept credit card they can always go to their bank and find out how much it would cost them .
they have no protection either on fraudulent use of cc,say someone buy from you from romania,you have 2 days to ship after charge go thru,are you going to call the cc issuer in romania and ask for the right party to come to the phone?if you manage to do so,the bank may not even know card has been stolen?
and how much is this long distance phone call going to cost you??
getting us all to hold business accounts is one step towards the right direction.
posted on October 15, 2001 08:35:56 AM newthey have no protection either on fraudulent use of cc,say someone buy from you from romania,you have 2 days to ship after charge go thru,are you going to call the cc issuer in romania and ask for the right party to come to the phone?if you manage to do so,the bank may not even know card has been stolen?
Because of rampant fraud, PayPal does not do business to or from Romania. Occasionally some badly informed PayPal customer loses money in a transaction to Romania, but they do so only by ignoring the obvious warnings.
posted on October 15, 2001 09:45:29 AM newThe thing that has me laughing about all this is that Paypaldemon usually responds to most posts. But how come when the topic of Paypal's financial losses come up he is very quite?? He can tell me to forget the $2,700 that was defrauded from me via paypal, but he can't say a damned word when it comes to how much money paypal losses.
You are the only person in this thread who is surprised by Damon's absence. All the others know that he (and all other PP employees) is legally probihited from discussing PayPal's financial situation right now because of SEC rules regarding PayPal's upcoming IPO.
[ edited by StormThinker on Oct 15, 2001 09:45 AM ]
posted on October 15, 2001 10:06:40 AM new
enterprisesglobal,
Your last post has been deleted as referring to another Member in a derogatory fashion is a violation of our Community Guidelines, particularly the clause that states all Members of the Community are to be treated with respect and consideration.
Sara [email protected]
posted on October 15, 2001 10:15:59 AM new
Dear Storm,
Thanks for notifying me that paypal can't join the discussion of its financial stand. I was unaware that paypal can not discuss this type of discussion.
posted on October 15, 2001 11:30:03 AM new
Drive the price down so I can buy more of EBAY. The company has great momentum and I am not a bit worried. I bought most of mine @ $32 so I am happy. Let's see....... Up by $3.52 to$63.42 so far. Doesn't seem to be many scared investors today.
[ edited by majesticman on Oct 15, 2001 11:36 AM ]
posted on October 15, 2001 12:00:57 PM new
And most companies bring companies public for what reason? I'm failing to see the difference in Paypal's plans for IPO as opposed to others. It's not like Paypal is the first company that filed for IPO that wasn't making a profit. This occurs regularly and is not uncommon. In my opinion, with a 10 million person user base, Paypal can turn into a profitable entity. Nothing strange or unusual here.
[ edited by majesticman on Oct 15, 2001 11:36 AM ]