eBay Struggles in Q4′
eBay posted their Q4’ results and the numbers show that even the auction giant is struggling right now.
The data released today revealed that 2008 Q4’ came in 7 per cent below last year the same period and in turn, eBay came short of what the street projected. eBay CEO, John Donahoe, tried to put a positive spin on the overall year’s performance, by stating their annual results were double digits above 2007, but in my opinion, they must be concerned about the trend their Q4’ results have started to paint.
As the online auction business loses its luster, especially in this trying economy, buyers are looking for more certainty and fixed rates when purchasing. I suspect, eBay will focus more on their classified verticals, shopping sites and acquisitions of the like going forward, to ensure a flexible and “economy current” business model.
