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eBay Gives Investors Positive Q1 Surprise

Most year-over-year drops smaller than expected

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It looks like eBay’s managing the recession and its other problems better than most people expected it to.  The auction company issued its financial report on the first quarter of 2009 this afternoon, and although the numbers aren’t good compared to last year’s set, eBay did a solid job of beating analysts’ estimates. 

eBay

Analysts thought eBay would report revenue in the range of $1.94 billion (down from $2.19 billion the same quarter last year).  eBay’s sheets show a sum of $2.02 billion instead.  As for eBay’s earnings per share, $0.34 was the forecast amount (compared to $0.42), and eBay reported $0.39.

CEO John Donahoe also said in a statement, "We . . . moved aggressively to strengthen our portfolio for longer-term growth.  With a macroeconomic environment that remains challenging, we are focused on operating discipline and strong execution of our three-year growth priorities in our core ecommerce and online payments businesses."

Investors seem to be almost overjoyed, sending the eBay’s stock up 8.07 percent so far in after-hours trading.

Still, eBay does face some big challenges, including seller discontent and competition from Amazon.  These issues may have contributed to its auction business declining by 18 percent (as measured in terms of revenue) since the first quarter of 2008.

eBay Gives Investors Positive Q1 Surprise
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  • http://www.durashopping.com Guest

    Thats alot of fees to collect in three months! I cant understand why people are still paying ebay and paypal all that money? Think about it 2 BILLION in only three months. Wow! Thats one hell of an incentive for someone to come along and give sellers a better place to sell and take some of that big slice of pie away from ebay. And thats just whats starting to happen. Sellers are finding better places online to sell. More and more acution sites and estores are popping up every day.
    I think all the out of work people selling stuff to get some needed cash may have helped ebay. But at some point out of work people are going to run out of things to sell. I would bet the number of full time long term sellers has gone down.

    • http://www.durashopping.com Guest

      I was a long term full time power seller on ebay. Ebay needs to make changes. But Ebay dont want to make the changes it needs to make. Thats why I quit ebay and found a better place to sell. I now have my own website where I sell my products and Amazon products, that means I also make money off other peoples auctions. Plus I can list all the products of my own that I want, (I do not have to list them with Amazon) I just put them up on my own website. I can also put all the affiliate links banners and digital products that I want on MY webpage and I get paid for it not Ebay. I have my own domain name so Iam building my own brand name and customer base. It was a turnkey website setup and ready to go when I started it, but with the online editor you get with it you dont need to know HTML or any programing to add your own products,banners, affiliate links, or digital products. I can change the site to look anyway I want its very easy to do. And I offer my costomers Free online games,news ,weather, sports and more. All for $20 a month. So why pay crazy Ebay and paypal fees when you can have all of this? And amazon will pay you to sell other peoples poducts along side yours and you dont have to list anything on amazon if you dont want to? This is an easy and fast way to quit ebay. I dont own this website service. I just want to help people find some place better than ebay to sell. If you want to do what alot of sellers are doing and get your own website just click this link…. http://www.durashopping.com/new

      • http://www.bandra-mumbai.com Citizen Journalist

        e-bays suprise is just that… a suprise. Once people get to know more about contenders such as e-bid and bonanzle, we will start to see a larger shift. Listing is free and the seller can choose their payment options with more freedom. e-bay got away from it’s focus and claims they are swinging the pendulum back. With the announcement of new changes in June, I really think they need to swing that pendulum harder. These changes are miniscule and cover none of the issues posted on message boards as to why many sellers are leaving. e-bay wants to have their cake and eat it, greed is what will kill them. A 20% decline is something to worry about so they better start shaking.

  • Guest

    You guys going crazy over eBay stock now & buying it up like crazy will have your ass handed to you on the next QTR report .. This false rise was not a rise at all .. This was more a case where the king is not wearing any clothes .. I can’t believe how many actually fell for this ploy so that a bunch of insiders who were holding stock could dump it quick and get out of dodge city … The performance of ebay was LOWER that last years 1st qtr but because they told in advance that they might only hit a ground ball and instead hit a pop fly just to get on base, everybody went nuts & drove the price up so these magicians with smoke & mirrors made everybody think they had pulled off a home run?? LOOK & SEE who was busy dumping their shares this go around .. I’ll bet it is a usual set of caracters that found them selves underwater with their current holdings ..
    eBay is once again getting ready to launch many more very unpopular changes once again on eBay which will further push the smaller sellers away & will make it actually harder for buyer to seek out unique deals .. These changes are going to drop eBay’s performane to an all time low .. these changes have already started to be thrust on the site (the new ebay motors) which has caused a major stir on eBay motors with buyers & sellers who are now leaving in droves .. These changes will hit the main core business before the end of april if donohoe has his way .. When they are made, watch for the lowest sell through rate in eBay’s history (it has dropped in the last year from a 60%-70%str to a new low of 15%-18%str over the entire site, these are due to major changes in the new search on eBay “best match” which takes the buyer to JD’s diamond sellers of cheap electronics & chinese trinkets instead of the popular unique sellers which made the site famous) ..

    There’s going to be a lot of cryers & very PO’d people come time for the 2nd QTR .. Maybe though JD will tell you its going to be half the performance of last years 2nd qtr so when it comes up only to be 3/4′s of last years numbers you will feel great & drive the stock up some more ?? This is a half full , half empty senerio .. only when its going down in numbers it taking good people down with the ship .. Allan Kraig feel free to contact me wiz212@webtv.net

  • Keith

    That’s way I go to the website below, they only charge a listing fee and that is it no valuation fees. They launched two weeks ago and already have almost 3000 listings not counting the buyers. Your first listing will be free to check it out. Ebay had screwed me twice and that will not happen again. They also counseled my mother-in-law which was a power seller because of a fraudulent bidder. She had over 750 items listed and when they reinstated her back her listings were gone.

    https://www.BigValueDepot.com/store/freelisting.asp?affSponsorID=265734

    Thanks, Keith

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