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eBay’s stock price close to an all time high

By Dan Wilson February 13, 2013 - 2:53 pm

As an eBay employee, many moons ago, I kept a healthy interest in eBay Inc.’s share price, not least because I had some options as part of my package there. But since departing I’ve barely looked at it: a share price doesn’t in itself tell us much aside from what Wall St. thinks will generate a return and the price alone is intrinsically uninteresting.

But I was surprised to see that eBay’s stock price has shown a bit of wow over the past year or so. It’s increased 70% in a run that has outperformed much of the tech sector, and indeed the market, bringing eBay Inc.’s stock price close to an all time high. Back in 2004, it topped $58 dollars and today it teeters around the $56 mark. It’s not so many years since it collapsed to close to $10.

ebay nasdaq

So why is this? Fortune magazine offers some insight in a rather breathless article called “eBay is Back!” in its latest edition. I thoroughly recommend that you take a read and see some of the things that Wall St. likes. John Donohoe comes in for great praise and there is some interesting reflection on what eBay got wrong in the past.

I’m sure you won’t be shy to share your views. But I’m staggered by some of the numbers in the article. In particular, JD notes that less than 10% of the eBay business is auctions. And one other thing leapt out too: eBay now considers itself a “technology partner” for big retailers.

  • 4 years ago

    Fair play to them, they have done a lot of good things recently. I almost bought shares when they were at $10, I wish I had now!

    • Darren
      4 years ago

      I bought 500 shares when they were around $12. I thought at the time the amount of consumers buying things from me all over the world, it had to pick up again.

      Also I do have faith in the ebay model, and their management team.

  • Gary
    4 years ago

    That article says that 30% of business is auctions and 70% fixed price.

    Hardly a surprise really as the corporates that ebay has attracted selling the new mall type stuff prefer the fixed price model.

    On the other hand though every auction listing is for 1 item only. Fixed price listings are for quantities.

    I bet if you research actual listing numbers then the percentage of auction listings is rather higher than 30%.

  • Gary
    4 years ago

    I think that “10% auction figure” that JD quotes is for the whole business of “Group ebay” (ebay/paypal/gumtree and all) and not just the ebay listing site. JD is trying to emphasise that the business of “Group ebay” is not just about auctions these days.

  • 4 years ago

    Not surprised by the 10% auction figure – I can never be bothered to wait around for a deal to close these days, and gravitate to the Buy It Nows. What does surprise me is that the general perception of EBay is still as an auction site.

    • Mog
      4 years ago

      I disagree. The general perception of ebay nowadays is as a scammers paradise.

    • Darren
      4 years ago

      Not my perception Mog…I think you are living in 2004!

  • Gary
    4 years ago

    If auctions are yesterday’s news why are free listing days auction only?

    • radroach
      4 years ago

      Free listing days do attract small scale private sellers onto the site who might also buy something at the same time, or later, when they get the proceeds in their PayPal accounts. Auctions are the most suitable medium for the type of goods they ought to be offering (of course such promotions are also used by those who are actually businesses)

  • puddleglums nest
    4 years ago

    perspective?

    I wish our business were only 1% of ebays. auction10%

  • davelovesebay
    4 years ago

    Actually it was higher in 2004

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