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eBay’s (EBAY) Worst Day, Earnings, Stock Down To $14

eBay (EBAY) was dead before it got started. The stock fell 13.6% during the regular session and came with a penny of its 52-week low at $15.01. Investors kept up their pessimism after hours, taking the stock down to under…

By Douglas A. McIntyre
Published October 15, 2008, 3:24pm ET · 2 min read

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AngrybeareBay (EBAY) was dead before it got started. The stock fell 13.6% during the regular session and came with a penny of its 52-week low at $15.01. Investors kept up their pessimism after hours, taking the stock down to under $14 before the company spoke a word about earnings

Analysts expected EPS to be flat at $.41. Estimates were for sales to hit $2.13 billion.

As it turned out, there was something to be excited about. eBay had third quarter revenue of $2.12 billion, up $228 million from the same quarter last year. Net income was $492 million, or $.38 per diluted share, and non-GAAP net income was $592 million, or $.46 per diluted share.

All that Wall St. cared about was the $.38 number

After earnings came out, the stock struggled to hold $14.

In the US, the company is not growing at all. The Marketplaces business unit, which consists of eBay, Shopping.com, StubHub, Kijiji and other ecommerce sites, had a solid third quarter, generating $1.38 billion in revenue, representing 4% year-over-year growth, 53% of which was generated outside the U.S.

PayPal continued to be the firm’s strongest division. PayPal with $597 million in net revenue, an increase of 27% year-over-year. It is a wonder that eBay does not spin it out to shareholders.

No one was excited by guidance. eBay said expects net revenues in the range of $2.020 to $2.170 billion with GAAP earnings per diluted share in the range of $.25 to $.27.

If the market keep slipping, this could be a $12 stock.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

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Douglas A. McIntyre

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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