Feeds

eBay meets target, splits stock but price tumbles

Did someone say 'irrational exuberance'?

  • alert
  • submit to reddit

Beginner's guide to SSL certificates

Despite coming in the results predicted, eBay stock fell 11 per cent yesterday.

Why? The online auction monopoly reported great numbers: gross income rose 44 per cent to $935.8m and net income rose from $157m a year ago to $226m. The revenue figure exceeded analysts' consensus estimate of $934m. eBay also rewarded investors with a two-for-one stock split. However, Wall Street had expected profits a penny higher per share, and also punished the company for a less bullish outlook than the one it wanted to hear. Analysts cited the company's high stock price as a measure of expectations - it's quadrupled since 2003.

Over fiscal year 2004, eBay earned $3.27bn, up from $2.17bn in 2003. The company expects the coming year to gross between $4.25bn and $4.35bn, while Wall Street analysts' high end expectation is $4.5bn. PayPal continues to be a nice little earner, taking in over $200m. Most of eBay's growth is now outside the United States, and the company has earmarked $200m to crack the Chinese market.

Stock fell 11 per cent to $91 in after hours trading. ®

Related stories

eBay aims to thwart phishing
eBay buys Rent.com for $415m
Internet fraud is easy, says judge...
Spanish eBayers in open revolt
eBay, PayPal and the Virgin Mary - scammed readers write

Beginner's guide to SSL certificates

More from The Register

next story
MI6 oversight report on Lee Rigby murder: US web giants offer 'safe haven for TERRORISM'
PM urged to 'prioritise issue' after Facebook hindsight find
Assange™ slumps back on Ecuador's sofa after detention appeal binned
Swedish court rules there's 'great risk' WikiLeaker will dodge prosecution
NSA mass spying reform KILLED by US Senators
Democrats needed just TWO more votes to keep alive bill reining in some surveillance
'Internet Freedom Panel' to keep web overlord ICANN out of Russian hands – new proposal
Come back with our internet! cries Republican drawing up bill
prev story

Whitepapers

10 ways wire data helps conquer IT complexity
IT teams can automatically detect problems across the IT environment, spot data theft, select unique pieces of transaction payloads to send to a data source, and more.
Why CIOs should rethink endpoint data protection in the age of mobility
Assessing trends in data protection, specifically with respect to mobile devices, BYOD, and remote employees.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.