Ebay drops 19%

103- 89. Big drop over night.
What will happen.
They missed their Earnings per share by one cent.
Is this just a major over shoot?
Should we expect a qick correction?
It’s already trading higher in after hours trading.


I wouldn’t expect a quick correction. People have felt that ebay was overvalued for months. And despite the hope that earnings for big companies wil be strong this year, the market seems to think otherwise. Hence the big drops this week.

The market sees ebay’s drop as proof.
just MHO

if ebay’s overvalued…

what about GOOG?


GOOG is good until MSN gets their act together. So far GOOG is the only one offering a descent web search. Yahoo is a portal and MSN is no where to be found.

So as long as GOOG can still generate ad revenue from the search engine, the market will support their .com fundimentals.

until MSN gets their act together could be a loooooong wait

ebay and goog are a hold in my book*
*I own neither

The problem with ebay and google is that they justify the high valuation by their huge growth rate. The problem is that when that growth rate falters even just a little bit, there’s a huge correction. Ebay is still growing like crazy but because of their high valuation, any slip will cause a quick pullback. At some point though you need to ask yourself if Ebay or Google is really worth that many billions of dollars? They will have to keep up that huge growth for years to actually reach that valuation under normal metrics. If you don’t believe it can, it’s a very risky thing to be betting on.

[quote=“ski”]103- 89. Big drop over night.

Now it’s at 75.59. That’s down from 118.42.

Over 30% … The future? … anyone shorting this stock?

It’s pricetobook ratio is more than twice Microsofts’ and higher than Yahoo! Is this a bubble or what?

What do you think is bargain basement level? Given it was trading at 64 and change earlier this year…

Anyone for 32.50???


I know next to nothing about investments but I wonder if this drop has anything to do with the boycott by Ebay storeowners that I’ve been reading about recently. Fees raised, store owners upset and moving onto other smaller, newer auction sites.