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Shorted Ebay today
putting my money where my blog mouth is, i shorted 5000 shares of ebay at $39 today. as i've said, i think ebay is a great company run by really smart people, however, i believe they have some tough times ahead as their walled garden marketplace confronts competition from the free and open network. as many have also said, their purchase of skype which is hard to justify on any synergistic level seems like a big sell sign. looks like backwards arbitrage as they are useing their stock at say a 40 p/e and buying another stock at say a 300 p/e.
October 26, 2005 in investments | Permalink
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Comments
Wow, that's quite a gamble.
Posted by: Randy Charles Morin | Oct 26, 2005 12:32:44 PM
don't know if i would short based on the Skype deal -- that's a longer-term play anyway, but i'm generally positive on that move.
now, w/ respect to the Google Base stuff... no comment ;)
- dave mcclure
Posted by: Dave McClure | Oct 26, 2005 2:34:17 PM
I think you made a mistake. Ebay has been making money since their first year of operation. Such, they are quite fragile but their competitors are not particularly serious (why are yahoo auctions not linked when you do a search in Yahoo search?)
Posted by: Seun Osewa | Oct 27, 2005 10:38:13 AM
