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Investors unmoved by eBay results

Double digit growth, but shares stagnant

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Shares of eBay were stagnant one day after the company posted banner first quarter results. Investors, otherwise up on tech shares during Thursday's trading, appeared concerned by eBay's second quarter predictions that were just at or below analysts' expectations.

The world's biggest flea market posted first quarter revenue of $1.03bn - up 36 per cent year-over-year. EBay's profit came in at $256m or 19 cents in earnings per share. That beat out Wall Street's consensus forecast of 17 cents per share.

"A record jump in registered users, record GMV, tremendous PayPal growth, and record net revenues all highlighted a wonderful quarter for eBay," said Meg Whitman, CEO of eBay. "The eBay community is thriving, and we're in an excellent position to deliver on both the top line and profit goals we've set out for 2005 and beyond."

But as the tech-heavy Nasdaq shot up more than 2 per cent, at the time of this report, shares of eBay were down a fraction at $33.07.

EBay's second quarter revenue forecast of between $1.03bn to $1.05bn seemed to disappoint analysts who wanted stronger growth. The rate of the company's still robust growth has been falling. In the same period one year ago, eBay posted growth of 59 perc ent and in its previous quarter it showed 43 per cent growth year-over-year.

The US marketplace business grew 20 per cent in the first quarter to $405m. International sales surged 52 per cent to $394m. Ebay's payments business produced 47 per cent growth at $233m.

Shares of eBay have been punished over the past year and are well down from a 52-week high of $59.21. ®

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