eBay Shares Plunge

The auction house to the world, eBay, is experiencing some difficulty meeting market expectations, causing share prices to tumble.

While eBay did experience financial growth during the fourth quarter, the totals did not meet expected amount. News of their shortcomings has caused their share prices to fall 18%. According to The BBC,

“Despite seeing net profits rise by 44% to $205.4m (110m) during October to December, from $142m a year earlier, Wall Street had expected more.

Its net revenues for the quarter rose to $935.8m from $648.4m, boosted by growth at its PayPal payment service.”

The BBC also indicated that although eBay’s profits were at 33 cents a share, analysts had expected 34 cents. News of the shortcomings did not discourage eBay’s president and chief executive Meg Whitman, who said 2004 was an “outstanding success” and has created “tremendous momentum” for the upcoming year.

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