(EBAY) Productivity Soars

August 11th, 2009

by The Investment U Research Team

In a bit of really good news, productivity jumped in the second quarter to 6.4% annually. This marks the highest productivity gain in nearly six years. The reasons why are simple, after you let half your employees go, the ones left have to do their work.

The result is productivity increases: fewer people doing more work.

And it’s a good thing. Productivity gains are what led to huge economic expansions after WWI, WWII and the dot.com fallout. In addition, productivity increases also mark the end of recessionary periods. In short, higher productivity is a good thing.

Speaking of productivity, General Motors announced that it would begin selling vehicles in California through eBAY (Nasdaq: EBAY). Unfortunately, this still doesn’t change the hegemony of dealerships and their control of the local markets, but it does mark a step in the right direction.

Had this announcement said that individuals could buy directly from GM – cutting out the dealership middleman – then we’d be breaking new ground. But while that may not be the case, more importantly, it shows that GM is starting to think a little harder on improving their business.

View original at: Investment Advice and Investment Research with a Contrarian Point of View

More on this topic (What's this?)
Productivity Soars (Investment U, 8/11/09)
Rising Productivity, Falling Labor Costs Give the Fed Leeway on Inflation (Money Morning, 8/11/09)
Free Super Bowl Tickets Thanks to eBay’s ($EBAY) Flaws? (Intelligent Speculator, 1/27/12)
ADP Unemployment Report Disappoints (Expected Returns, 9/2/09)
Read more on Productivity, EBay at Wikinvest

Related Posts:

  1. ($AAPL) Apple’s New Foray – might extend its digital payment processing businessRumor has it that Apple (AAPL) might extend its digital payment processing business by allowing...
  2. (AMR) Badger Meter’s Green Technology Soars Under Pressureby Katharine Schildt, Assistant Editor, The Oxford Club The demand for utilities is something that...
  3. (AAPL) Best Invention of 2008: Apple App StoreFor those of us outside of the iPhone universe, we have no idea on the...
  4. Bank and Broker Default Risk SoarsThe following observation comes from Bespoke. “As the scarecrows (’if I only had a brain’)...


Search Posts by Tag: | | Catalog & Mail Order Houses | Services

RSS Feeds by Tag: EBAY | eBay Inc. | Catalog & Mail Order Houses | Services |

Other Posts by: | RSS Feed for this author