EBay Stock Falls on Concern That Google May Soon Add Online Auctions Oct. 25 (Bloomberg) --
Shares of EBay Inc., the world's largest Internet auctioneer, fell as much as 5.6 percent on concern Google Inc. may soon introduce a new feature that allows users to sell products online. Bear Stearns Cos. analyst Robert Peck said today in a note that Google has been testing a Web site that looked like an on online marketplace, similar to that of San Jose, California-based EBay. Peck cited screen shots of a product called Google Base that were posted on a Web log. ``Should this proposed product be utilized as speculated, we would think that it is a large incremental positive for Google and a large incremental negative for EBay,'' Peck wrote today. He said he had been unable to confirm the plans with the company. The move signals Google's intention to expand further beyond Web search. Adding online auctions or sales would enable Mountain View, California-based Google to tap its base of 400 million monthly users, posing a threat to EBay. Chief Executive Officer Eric Schmidt said in June that Google is developing a payment service. That may rival EBay's PayPal payment product. Google spokespeople Steve Langdon and Lynn Fox didn't immediately return calls seeking comment. EBay doesn't comment on rumors or speculation, spokesman Hani Durzy said in an e-mail. EBay shares fell $1.85 to $37.57 at 12:57 p.m. in Nasdaq Stock Market composite trading. They fell 32 percent this year before today. Google shares fell $3.53 to $345.12, after rising 81 percent this year before today. Peck cut his recommendation on Ebay shares to ``peerperform'' from ``outperform'' in September. At the time he discussed the possibility of Google starting a rival product. Peck wasn't available for an interview, Bear spokeswoman Monica Orbe said. Classified Ads? Google may use Google Base as a classified ads site, UBS AG analyst Benjamin Schachter said in a report. That would compete with EBay and sites such as Craigslist.com, he said. The screen shots showed a page that enabled users to input details of a product for sale. ``Google Base is Googles' database into which you can add all types of content. We'll host your content and make it searchable for free,'' the site says, according to the screen shots cited by Peck and Schachter. Google's users rose 38 percent in August, according to Reston, Virginia-based ComScore Networks Inc. EBay said Oct. 19 that listings rose 32 percent in the third quarter to 458.6 million and registered users rose 35 percent to 168.1 million. PayPal had 86.6 million total accounts at the end of the period, 53 percent more than a year ago. To contact the reporter on this story: Jonathan Thaw in Los Angeles at [EMAIL PROTECTED] __________________________________ Yahoo! FareChase: Search multiple travel sites in one click. http://farechase.yahoo.com Visit the MoPo Mailing List Web Site at www.filmfan.com ___________________________________________________________________ How to UNSUBSCRIBE from the MoPo Mailing List Send a message addressed to: [EMAIL PROTECTED] In the BODY of your message type: SIGNOFF MOPO-L The author of this message is solely responsible for its content.
