Maybe those who are bearish on EBAY would prefer to purchase put options rather than short the stock. If rules are changed making it difficult or impossible to remain short, forcing you and all other shorts to buy, all at the same time (squeeze!), you'll probably wish you had bought puts instead of shorting the stock. Let the options market maker figure out how to get short and stay short (to hedge his position after selling you the put). He has more flexibility than you do.
Umm, really? Shipping rates have changed little (especially with inflation) since Amazon got into Ebay's territory. They are growing quite nicely. USPS Book rate is also still very low.
EBay Sees 1st Quarterly Sales Decline, Cuts Forecast Oct. 15 EBay forecast fourth-quarter revenue of $2.02 billion to $2.17 billion, compared with $2.18 billion a year earlier. The value of goods sold on EBay's sites fell 1 percent in the third quarter, the first drop in the company's history. Chief Executive Officer John Donahoe is cutting 10 percent of EBay's workforce and making acquisitions to bolster secure payments unit PayPal and the company's accelerating classifieds division as its Internet marketplaces face increasing competition and growth stalls. ``It's a combination of the company's natural business model slowing down, partly because of increased competition,'' Douglas Anmuth, an analyst at Barclays Capital in New York, said today in a telephone interview. ``Then you have the macro environment. The numbers are certainly worse than I expected.'' EBay declined 63 cents, or 4.1 percent, in late Nasdaq trading after the results were released. Earlier, the stock fell $2.41, or 14 percent, to $15.33 in Nasdaq Stock Market composite trading. The shares have dropped 54 percent this year. San Jose, California-based EBay reported net income of $492 million, or 38 cents a share in the third quarter, compared with a loss of $935.6 million, or 69 cents, a year ago, when results were hit by a writedown in the value of its Skype Internet telephone unit. Forecasts Revenue rose to $2.12 billion, from $1.89 billion, helped by growth in its PayPal Internet payments unit and global classified advertising. Earnings excluding some items of 46 cents a share beat the 41-cent average estimate of 25 analysts surveyed by Bloomberg. http://www.bloomberg.com/apps/news?pid=20601087&sid=aZMzcD1EQqEc&refer=home