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Ebay came out with their earnings, and if you look at it quickly, it seems the beat the street. However, when we look into it deeper, they did not!

When major area of importance for ebay growth is active users. Basically its how many people actively use ebay. Well, this number only grew 1%. That is extremely small. In essance, the deviation of true active user could have been flat to down! We can easily attribute this to the long time ebay sellers going elsewhere. Why? Ebay is continuing to raise its fees to the sellers. The sellers are now going to different niche marketplaces to sell their products. In my opinion, this will continue Ebay to lose marketshare if they don’t properly address the SELLERS (not some PR effort with Wall Street)

The second area deals with the dollar exchange. Due to the low dollar and with existing international purchases, it shows Ebay making more money away from natural business flow. As a result, expect ebay to drift lower over the next quarter.