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.

3 thoughts on “Shorted Ebay today

  1. 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

  2. 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?)

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