With Ebay taking a hit in price this year, you have to wonder if it can get back on track. I don't think so, as their core business growth is slowing, and there is no real word on what the strategy is for the long term. It would seem that their growth is based on raising user fees for listings, and the acquisition trail hasn't yielded the results expected. What does Ebay need to do?
First and foremost, Ebay has to improve the ecommerce participation rate amongst users. Although there is growth with businesses using ecommerce, there is still a largely untapped market of individual users out there that still are wary of ecommerce. If Ebay can make the big sell to these people, then things might get better for them over the short term. For the longer term, Ebay will have to come up with a better plan to improve growth.
Maybe Meg Whitman is out of steam on this one...I don't see the stock price beating the indices any time soon.
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