The economy seems to be falling to pieces, and unfortunately for a certain auction company’s shareholders, eBay may be performing a similar dive.  The news wasn’t good as the company reported its third quarter results this afternoon.

First, we should note what happened to eBay’s stock during normal trading hours: it effectively tanked.  eBay dropped 13.59 percent, losing to both the Nasdaq (down 8.47 percent) and the Dow (down 7.93 percent).  This set an ugly tone.

As for the report, eBay managed to succeed in a few senses; its third quarter revenue was more or less in line with previous guidance, and it beat forecasts pertaining to non-GAAP earnings.  But it’s in the months ahead that the real problems lie.

Joe Weisenthal writes in relation to the fourth quarter, "Non-GAAP EPS is expected to be between $.39-$.41, well below current expectations of about $.47."  Also, "Expected revenue of $2.02b-$2.17B is well below current estimates of $2.43B," and it even registers beneath revenue from a year ago, which was about $2.18 billion.

As a result, investors have lopped another 4.83 percent off eBay’s stock so far in after hours trading.