Recs

8

eBay vs. Amazon

The following video is part of today's MarketFoolery podcast, in which host Chris Hill, senior analyst Jason Moser, and advisor Joe Magyer discuss the latest business news. In the wake of a strong earnings report from eBay, the guys analyze the company's PayPal and marketplace divisions and the challenges each face. How much of a threat are financial giants like Visa to Paypal? And how dominant is Amazon.com in the marketplace landscape? The guys share their thoughts and pick the stock they prefer for the next five years.

Looking for the next technology wave? The Motley Fool has a new free report on mobile named "The Next Trillion-Dollar Revolution" that details a "hidden" component play inside mobile phones that also is a market leader in the exploding Chinese market. Inside the report we not only describe why the mobile revolution will dwarf any other technology revolution seen before it, but we also name the company at the forefront of the trend. You can access this just-released report right now by clicking here -- it's free.

The Steve Jobs Betrayal
You may already know that in the final year of his life, Jobs revealed a stunning betrayal — and told his biographer, "I will spend my last dying breath... and every penny of Apple's $40 billion in the bank to right this wrong." What was it that made Jobs so irate — and why could it make a few in-the-know investors some major profits over the coming months and years?

Enter your email address below to find out what made Jobs so enraged!

Chris Hill owns shares of Amazon.com and eBay. The Motley Fool owns shares of Amazon.com and MasterCard. Motley Fool newsletter services have recommended buying shares of eBay, Amazon.com, and Visa and writing puts in eBay. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On January 19, 2012, at 7:17 PM, Hawmps wrote:

    A "click here to read the transcript" link would be super cool.

  • Report this Comment On January 19, 2012, at 7:23 PM, George513 wrote:

    As far as making/saving $ and eBay goes, forget the stock and use the website.

    If you send the seller a question about an item, find another of their listings, and send the question from that item page, rather than from the one that you actually want. This will add a little bit of work for the seller, if they want to add the question/answer to the item description page that you are actually interested in.

    If you see an item that you want listed in auction format, send the seller a message asking if they will accept $x to end the auction early and sell the item to you. May be telling them that they would not have to wait as long to get their money (they would probably know that, but it still might help). If that does not work, use a sniping service such as Bidball.com to bid for you. It'll bid in the last few seconds, helping you to save money and avoid shill bidding.

    Use a site like Ebuyersedge.com to set up saved searches. You'd get an e-mail whenever a match is listed. Especially good for "Buy It Now"s priced right.

    If the item that you are looking for is difficult to spell, try a misspelling search site like Typojoe.com to hopefully find some deals with items that have main keywords misspelled in the title. Other interested buyers might never see them. Then, if the item is listed an auction format, after a few days of no bids (hopefully anyway) send the seller and offer to end the auction early and sell the item to you. They may worry that no one is interested, and take whatever they can get.

  • Report this Comment On January 20, 2012, at 5:03 PM, PhilipCohen wrote:

    It’s funny how various analysts can come up with so many different interpretations of the eBay financials …

    Amongst the analysts, Deutsche Bank’s Jeetil Patel is still the only one that has over time consistently been wary of eBay and again prior to the 4Q2011 financials release said, “sell”.

    As usual, Donahoe is thrashing around in the quick sand of his own making, and the eBay marketplace is continuing its stagnation compared to ecommerce in general, and

    “… when foreign exchange is removed, eBay GMV growth rate for Q2-2011 is 10%, Q3-2011 is 11%, and Q4-2011 is 10%.”

    http://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/comments/...

    “When Do We Start Calling eBay A Payments Company?”

    http://www.businessinsider.com/ebays-transformation-when-do-...

    This “Business Insider” article contains a revealing graph of eBay revenues since 2003. It shows quite starkly how eBay’s marketplace revenue has stagnated since 2007, about the time that the headless turkey, John Donahoe, got hold of the tiller and started his “destructive innovations”.

    So, the eBay marketplace has been stagnant since 2007—even before the GFC. Conversely, Amazon’s marketplace has not stagnated, it is consistently moving ahead in leaps and bounds, ergo the eBay Marketplace has effectively been in decline since 2007.

    eBay’s “take rate” improved simply because it is now charging a FVF on shipping and handling costs. To what is eBay next time going to add FVF to again pull the wool over analysts’ eyes?

    The graph also shows the eBay-underpinning increases in revenue eBay has received from PreyPal during the same period, that is, from roughly when the “eBafia Don” effectively mandated PreyPal’s use on the eBay Marketplace. Business Insider apparently thinks therefore that eBay’s future lays in PreyPal.

    Well, if BI or anyone else thinks that the retail banks are going to let such a parasitic upstart as PreyPal nibble at their field of expertise for any length of time, all I can say is, Dream on …

    Unfortunately for eBay’s chief headless turkey, Visa’s “V.me”, when it is up and running later this year, will put paid to whatever success that the clunky PreyPal has had outside of its mandated use on the eBay Marketplace—and soon thereafter both these unscrupulous and clunky entities will commence their long-deserved journeys down the gurgler.

    PayPal claims PayPal Is Not a Payments Processor!

    http://forums.auctionbytes.com/vbulletin/showthread.php?t=24...

    eBay / PayPal / Donahoe: Dead Men Walking

Add your comment.

Compare Brokers

Fool Disclosure

DocumentId: 1761501, ~/Articles/ArticleHandler.aspx, 5/27/2012 4:02:35 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 1 day ago Sponsored by:
DOW 12,454.83 -74.92 -0.60%
S&P 500 1,317.82 -2.86 -0.22%
NASD 2,837.53 -1.85 -0.07%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

5/25/2012 4:00 PM
MA $413.96 Down -5.87 -1.40%
MasterCard, Inc. CAPS Rating: ****
V $119.37 Down -0.40 -0.33%
Visa, Inc. CAPS Rating: ****
AMZN $212.89 Down -2.35 -1.09%
Amazon.com CAPS Rating: ***
EBAY $40.35 Up +0.68 +1.71%
eBay CAPS Rating: ****

Advertisement