There were a couple of opinions issued on eBay yesterday.
The two opinions shared one factor in them. They both underline valuation as the main reasons for their downgrades. Apparently the current eBay stock price has reached their price targets and they have become alarmed by it. They both go on explaining that the fundamentals in the company remain sound and they’d be buyers on any (serious!) pull back. Specifically they point to the appreciation of some 20% on the stock in 2012 which is about 2 ½ months long.
Questions are: If a company is healthy and (as mentioned) remain strong on its financial statements, why knock it? Didn’t you (the analysts) place a target price and isn’t the stock reaching that set price? Isn’t that what you wanted? To be right on your estimate? Could it be that you low balled your own opinion? What exactly is the definition of valuation? When you priced your estimate at $38, did you not consider the valuation at the time? Oddly enough when these downgrades were issued yesterday the stock went higher. What does that say about what investors think about their opinions? Was there a single news that prompted you to issue your downgrades? And in Mahoney’s case (Citi analyst) he jumps on Amazon boat AGAIN and tries to praise a company with a PE ratio in triple digits, the same company which missed the analysts’ estimates just last quarter which included Christmas shopping season (the main course of a year). So in short the implied recommendation from Mahoney was to dump eBay and buy Amazon a company with weak financials and a big promise for the future.
I think I’ll stick to eBay stock and ride this wave to over $40 for now.
'So in short the implied recommendation from Mahoney was to dump eBay and buy Amazon a company with weak financials and a big promise for the future. I think I’ll stick to eBay stock and ride this wave to over $40 for now.'
Oh lordie it looks like you made another one of your 'great' calls. Check the changes in price of eBay and Amazon today. I think I'll stick with Amazon and ride the wave to over $200 for now.
Deer Ebait Hisstoryan, Inbesting is knot about making profits! No! It about bying high den holding tha bag fur yers on end while it inch its weigh back up to brake even point. It about avridging down wen tha botdumb drop out sew you ken sey you did knot by at tha peak! Now dat sumting you ken take pryde in! Enywon idyit ken sea dat Amazon wented up moore twoday den Ebait has goned up in tha lass 5 yers. Enywon ken see dat Amazon has goned up over $150 par cher in tha lass 3 yers. Due knot go by dat cuss tha massive gains are knot tha point! Tha point is how two read into tha reports an day sey Ebait funduhmentals are sound! Amazon juss has massive gains an big promisses fur tha future! Wat hogwash!
Hear is my advice fur you mr. Ebaithystoryan. Due knot beleaf tha analists wen day talk bad about my beluved ebait. Only beleaf dem wen tha talk bad about Amazon! Dont you git dat fool?