eBay Needs Some Magic to Restore Itself

 Blogging Stocks

Do you believe in magic?

Meg Whitman, eBay’s CEO, believes in the eBay magic. She wants to restore it. Well, she said it better. She said the SIF (Store Inventory Format) listings growth have “diluted the magic of eBay,” and that, “We are trying to get back to the essence of eBay.”

Magic shmagic! That was investors’ reaction today as the stock resumed its selloff after such positive after hour gains yesterday. The stock declined a whopping 4.9% or $1.27 to close at $24.66. Why? I can only assume that growth concerns still exist, a flat Q3 guidance and the fact that the announced fees increases could upset eBay sellers further at the time they are already upset because of the Google Checkout ban.