The lead balloon known as EBAY’s stock continues to deflate. Citi analyst Mark Mahaney dutifully tracks listings every week and continues to report that they’re ahead of consensus–but no one cares.
Why? Because “ahead of consensus” doesn’t mean much when you’re only talking about 14% core organic growth. Also, more importantly, according to Mahaney, core organic listing growth is slightly lagging Q3’s, despite eBay’s recent reinvigoration efforts. This is erasing investor hopes for revenue acceleration.
eBay’s renewed focus on its core commerce business is smart, and eventually it should begin to pay off. The company could help itself focus by selling a business that has nothing to do with commerce and that it never should have bought in the first place: Skype.