Quick Hits: eBay Gets Bid Down
Brief scrutiny of today's headlines.
The company's shares dropped 7% yesterday after the company reported that some key indicators of its financial health were in a slump. EBay CEO John Donahoe attributed the poor performance to the weak economy.
Among the telltale signs of slowdown: The value of goods sold on the site only rose 4% between April and June, half the rate increase of the previous three months. Donahoe also said that the weak economy has pushed consumers away from higher priced goods, stagnating eBay's car sales, which had jumped 7% in the first quarter.
Even so, eBay's 22% proft increase exceeded Wall Street estimates, and Donahoe announced changes that should attract more sellers, like lowering listing fees.
Do I hear lowering the commission rate? Reimbursement for shipping costs?
If eBay plans on beating out the economy, it had better keep bidding.
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