Despite a 41% rise in unique visitors, eBay has recorded a 6.7% drop in revenues for the fourth quarter of 2008. With things expected to get worse, eBay Inc. shares fell nearly 14 percent.
Its tendency to be in denial seems to have taken a surreal turn as eBay blamed the strengthening dollar for its woes, even as Amazon.com scored exceedingly well during the last holiday season. Despite eBay’s claim that e-commerce has slowed down globally, MercadoLibre of South America continue to grow.
And while powersellers continue to find other e-commerce solutions elsewhere, eBay remains steadfast in its conviction that policy changes it made in the last couple of years were not detrimental.
The next 6-12 months will be crucial in determining whether eBay can retain its status and last out the recession.
What are your predictions for this ailing giant?