ebay’s aluminum ore price dropped on Wednesday to its lowest level in almost a year, with traders blaming the global economic slowdown on the government’s stimulus package and the global supply glut.
The metal’s fall prompted ebay to sell $2.4 billion worth of shares, which is the biggest single stock sale in the e-commerce company’s history.
The e-mailed statement from ebay did not say why the price was so low, or if it reflected any weakness in the global economy, or the U.S. or Chinese economies.
The price fell to $1.90 per pound on Wednesday, its lowest point in five years.
ebay shares rose 6.7 percent.
e-bay has been losing market share to Amazon, which also sells e-books, movies and music through its Prime membership program.
The drop in e-book prices is a sign of a slowing global economy and a tightening supply glut, e-tailer Zoho said in a report on Wednesday.
“The price of e-readers has been trending downward since the start of the year and as such, this could be a temporary dip in demand,” Zoho’s chief economist Tom Hulm said in the report.
“In the future, we may see a further drop in the price of E-readings.
The drop in E-reader prices could also be linked to the global financial crisis and the slowing economic growth, the latter of which will continue to push the price lower.”
A drop in prices will not necessarily mean that the ecommerce company will have to lower prices to attract shoppers.
It will likely be able to make a profit by lowering prices, which would help to offset any increase in sales from its more established rivals.
E-book retailers like Amazon, Amazon Prime and Apple’s iBooks have been pushing e-reading readers out of the retail market, but e-reader manufacturers and e-content providers such as Netflix and Hulu are still growing their business.