posted on June 28, 2001 04:13:01 PM new
Who thinks Free Listing Day is mainly done to make sure that the semi-annual June 30 financial and management information given to shareholders and filed in the 10-Q with the SEC reflects many more items for sale than there would have been on this date? Maybe that's why we always get one at the end of the year too. I sure do but who's complaining, not me!
posted on June 28, 2001 04:49:52 PM new
It's not only to boost auction count, it will also boost revenue. Note the "odd" way they do it. They CHARGE you the fee, and then immediately credit your account. That "charge" will get counted as revenue.
Everyone knows auctions have been stagnant (actually declining) the whole quarter. I'm sure they didn't want to show that now... Meg is street-smart (Wall Street that is, even though she's running eBay into the ground) -- anyone who believes this freebie was for the "American Collector" (LOL) ought to have their head examined...
This is probably the first time EVER that eBay would have reported a DECLINE in auctions and a DECLINE in auction revenue Q-to-Q (fewer items listed, even fewer actually selling). By playing games with this free listing day, they'll undoubtedly save that embarrassment for another quarter.
BTW, don't be surprised if it doens't boost EARNINGS too. Even though they're crediting accounts immediately, it wouldn't surprise me to see them take that charge in 3Q rather than now -- iBazar hits this quarter & is losing 4c/share (they already announced that). I'm quite sure the (real, not "pro-forma" earnings are dismal, so they may be forced to play some more games to boost those...
This may be the first act of "financial desperation" for eBay! Don't pay attention to the pro-forma earnings "silliness" they publish on July 19 (where they'll ignore all the bad stuff), but check the SEC filing when it eventually comes out. My guess is that without the freebie today, their numbers would have been "level" (at best), most likely a little lower.
(BTW, this is probably a precursor to another increase in listing fees/commissions and even more "nickel & diming". They'll pull out ALL the stops to turn the trend around)
posted on June 28, 2001 05:12:01 PM new
BTW, don't run out and short eBay stock based on my comments above They are (and will continue to be for a long time) the ONLY tech stock making any money. Amazon announces that they'll "only" lose $1.9 BILLION and their stock goes up, LOL!
Even if eBay's income/revenue level off and don't come CLOSE to projections, expect institutional money to POUR IN (there's no other "tech stock" to buy). The market is a very funny thing - you can forget "fundamentals" with eBay. When it's the only game in town, even the poorest of fundamentals may not be enough to bring it down...
earnings are dismal, so they may be forced to play some more games to boost those...
They are (and will continue to be for a long time) the ONLY tech stock making any money. Amazon announces that they'll "only" lose $1.9 BILLION and their stock goes up, LOL!