33% down for no good reason
This is the situation the eBay share price is in for this year.
Obviously there are some reasons - fears of slowing growth and increased competition being the main ones. But eBay at $29.50? Wow! I never thought I would see that day.
It is frustrating watching the NASDAQ from a distance of about 3000 miles. What really is going on with eBay? Who is selling so much of it and why?
I am glad I am in no hurry to sell my shares as the current price is a terrible one. But on a 2006 PE of under 30 and with a growth rate of 35% this has to look like good value now? Especially with the defensive moat eBay has around its business.
I think to hold volatile shares like eBay you need to be healthily detached from the share price and very patient.
I try to be both those things. Perhaps I will come back to the stock market after the World Cup!
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