Friday, July 20, 2007

EBAY (eBay Inc): What else does this stock have to do!?

OMFG... You have a stock that has soundly beat estimates two quarters in a row and investors still can't go all in with this stock!? You all understand that the second quarter is easily the toughest for eBay. Not so...

eBay delivered better-than-expected second-quarter results with profits that jumped to 50% (That's two quarters in a row we've beat estimates and brought in 50+%) Revenues climbed 30% to hit $1.83 billion. Adjusted earnings soared 34%, landing on the $0.34 per-share mark. The top- and bottom-line showings clocked in slightly ahead of where Wall Street was perched. The magic number was .32. eBay played the part of Houdini.

I just don't understand what's going on. We're making a killing off the weak dollar meaning International Sales add that much more to the bottomline. G-Pay is calling PayPal Daddy and Skype just keeps on growing. Let's not forget that eBay now has advertising dollars and a sick portfolio of companies that include StubHub, Kijiji and Half.

So listings are lower. That's because eBay raised listing fees to reduce the amount of crap on the site. What!? Are they telling me users love a crappy user experience where they have to sift through thousands of worthless listings? Give it time, eBay has announced that they are updating a ton of features on their site during eBay Live.

My call... HOLD... Hold until this stock hits 58 again. Hold on... hopefully just a little bit longer.