eBay Drops On Earnings Report
Shares of EBAY slid six percent this morning even though the company beat estimates.
A net loss of $935.6 million, the remainder of eBay’s write-off $1.4 billion for Skype and $564 million in earnings, spurred the drop, but not as much as the company’s plan to increase spending while discounting its services for the upcoming holiday season.
Regardless, eBay still beat analyst expectations by pulling in $1.89 billion in revenue for the third quarter. Analysts had expected $1.83 billion.
"During the quarter we made significant progress against our business unit strategies which resulted in record net revenues of $1.89 billion, a 30% year-over-year increase," said eBay President and CEO, Meg Whitman.
"eBay International, PayPal Merchant Services, StubHub, classifieds and our advertising businesses all performed above our expectations."
Even so, nervousness about increased spending and discounts drove shares down. Currently, eBay is trading at $38.06, down 6.26 percent.