eBay meets Q2 Earnings Estimates, raises Store fees, buys back stock

[mandy]

Assorted news coverage of eBay's Q2 earnings:

EBay Inc., the online auction giant, reported a 14 percent drop in profit for the second quarter Wednesday and said it would try to rejuvenate its core auction business by making it less attractive for merchants to sell through storefronts on its site.

The company also said it would buy back $2 billion of its stock over the next two years, its first such move...

EBay said it would increase the fees it charges to merchants who operate storefronts on its site, in hopes of encouraging them to auction more items...

full article: http://www.nytimes.com/2006/07/20/techno....html?_r=1&oref=slogin

Web auction leader eBay posted on Wednesday quarterly results matching Wall Street estimates and confirmed fears of slowing growth, but its shares rose 5 percent as it announced a share buyback....

"We were stronger in PayPal and Skype and Shopping.com and had slightly slower growth rates in our core (auction) business," Whitman said. "We think it could be stronger," she added, speaking of the company's mainstay auction business...

full article: http://news.com.com/eBay+meets+estimates...96244.html

"What has been driving negative sentiment (about the stock) has been the shift toward fixed-priced listings and away from online auctions," Stifel Nicolaus analyst Scott Devitt said.

By raising prices on fixed-price, or instant purchase listings, and doing more to promote auctions, eBay should see higher commissions and faster sales turnover, he said. "So you could actually get an acceleration of growth later this year."

Goldman Sachs analyst Anthony Noto agreed...

full article: http://www.washingtonpost.com/wp-dyn/con...01337.html

[stardust]

What they're doing to make the core business *we think it could be stronger* is outright extortion.

[regic]

[quote author=amy link=topic=4454.msg18149#msg18149 date=1153372059]
Wall Street likes the Meg and Bill "screw store sellers" show:

EBAY After Hours (RT-ECN): 27.43 Up 1.50  (5.78%)
[/quote]

The gains evaporated before the opening bell.  The stock is down 0.28 to 25.65 and hit another 3-year low of 25.46 earlier this morning.

[BellisimaJ.]

I wish to hell that someone would sell off a huge block of stock today----some institutional investor could really impact the stock price.

[bargainbloodhound]

[quote author=regic link=topic=4454.msg18061#msg18061 date=1153348334]
For XPP:

PAYPAL

Total Registered users   105.0 (Q1)   113.7 (Q2)
    Active accounts      29.2  (Q1)  29.5 (Q2)
    Inactive Accounts    75.8  (Q1)  84.2 (Q2)

Net change Q1 to Q2: active users grew by 0.3 million while inactive users grew by 8.4 million
[/quote]

...and the anemic growth (?) in active users was before Google Checkout opened. Next quarter's numbers should be interesting.

The stock is down 0.67 to 25.26.  The stock repurchase announcement and fee hike aren't helping.  tears for Meg--> 

[regic]

Thursday's close 24.66 down 1.27 (4.90%).  The stock is down 48.48% since 1/1/06 and nearly 60% since its all-time high in 2/05. 

The technical analysis indicators from T&B/Barchart are at 100% Sell .For chart followers, the next support level is 22.93.

[stardust]

I think ebay would love for it to fall some more.  They want to buy a bunch of it back dirt cheap.  I'm so cynical, I think it's all in their plan....

[BellisimaJ.]

[quote author=stardust link=topic=4454.msg18256#msg18256 date=1153467463]
I think ebay would love for it to fall some more.  They want to buy a bunch of it back dirt cheap.  I'm so cynical, I think it's all in their plan....
[/quote]

Maybe, but maybe not. The planned buy-back is supposed to occur over a 2-year period. Plus, the actions they have taken have soooooooooo many long-term implications, I don't think that is their plan. But, who knows. Nothing they do makes much sense. ;D

[xppman]

One things for certain the insiders have made MILLIONS
while the long term investors are losing their shirts.

Just like what happened with ENRON.

I imagine the SEC and DOJ will be looking into this soon.
If not already. If you go back in time and see when these
insiders started dumping their stocks you will see a pattern here.

[BellisimaJ.]

[quote author=xppman link=topic=4454.msg18271#msg18271 date=1153481922]
One things for certain the insiders have made MILLIONS
while the long term investors are losing their shirts.

Just like what happened with ENRON.

I imagine the SEC and DOJ will be looking into this soon.
If not already. If you go back in time and see when these
insiders started dumping their stocks you will see a pattern here.
[/quote]

One can only hope!!! ;D