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eBay’s Q4 Earnings Not Apocalyptic

And that's about the best anybody can say

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[ Business]

People have, at least to some degree, become accustomed to the recession.  Yesterday’s 330-point drop in the Dow didn’t seem so bad, for example, following the recent string of 500-point losses.  And yet, even under conditions such as these, eBay’s fourth quarter financial report didn’t look too good.

eBay

Analysts were hoping to see the company report $2.1 billion in revenue and earnings of $0.39 per share.  Instead, those numbers turned out to be $2.04 billion and $0.41 per share, respectively.  Net income slid 30 percent during the fourth quarter.  It turns out the marketplace business unit (which splits eBay.com off from Skype and other properties) made 16 percent less this year than last, as well.

John Donahoe, eBay’s CEO, tried to explain in a statement, "While the holiday season was tough and competitive, our overall results for 2008 were strong. . . .  We will build on our strengths in 2009 while managing our business prudently in the continued challenging environment."

But the near future didn’t seem bright, either, with eBay expecting earnings between $0.32 and $0.34 per share and revenues around $1.9 billion for the first quarter of 2009.  Analysts would prefer to see $0.40 and $2.09 billion.

Donahoe, who hasn’t quite completed his first year on the job, might consider making some drastic changes unless he wants eBay’s shareholders to start eyeballing him the same way Yahoo’s investors looked at Jerry Yang.

eBay’s Q4 Earnings Not Apocalyptic
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  • http://nymarts.com NYM Arts

    Yes, Ebay C.E.O. John Donahoe is a Business MURDERER.
    And I have found Credible Articles by some Very Notable people that Ebay will be undergoing a Complete investigation by Federal and California authorities.
    Criminal Charges should be brought, and then Maybe we can all get back to a Thriving Business once everything is brought to light and FLUSHED CLEAN.
    The SHERMAN ANTITRUST ACT is center stage.
    The evidence in UNdeniable.
    Punishment is Inevitable.

    • Guest

      I dream of the day this comes true :)

  • Guest

    Clueless and oblivious, that’s Donohoe. Does he really have no idea what his incompetent ‘innovative disruption’ did to a once-flourishing selling venue? That he deliberately drove away EBay’s core base of sellers, who were also the main buyers? EBay has alienated its base so bitterly that it is now irrevocable. Only a change in management and overhaul of the destructive ideas (like the disastrous Best Match and DSRs) will ever draw back the sellers.

  • http://nofeedbackpuh-leeze.blogspot.com/ marty

    Love the comment – “We will build on our strengths in 2009 while managing our business prudently in the continued challenging environment.”

    This management teams only strength is the Ebay name. Managements biggest challenge is overcoming their own ineptitude.
    And that’s a huge obstacle considering their severe lack of knowledge pertaining to dynamics of their own marketplace.

    Calling Donahoe & Co. “Ebay challenged” is a compliment.

    • http://www.ColderICE.com John (ColderICE)

      Ebay execs, I got a quick message for anyone that will please listen?

      http://3rdpoblogs.com/colderice/2009/01/21/message-in-a-bottle-dear-ebay-from-the-great-minds-of-circuit-city-leadership/

  • Vinny

    That’s right! I just gave John Donahoe his own definition. How can this guy still be CEO? He came in with this false bravado,claiming he would revamp ebay. Instead, he is driving ebay into the ground.Ebay used to be fun and exciting. Now it is a place where stress and anxiety is all that you will experience. I’m so surprised that more shareholders haven’t pulled out. I used to be a huge powerseller, now I have moved my business to other e-commerce sites. My advice is get out of ebay while you can. You will be glad you did. As for Mr. Donahoe; wake up!! A monkey can do a better job than you can!

    • Guest

      “Now it is a place where stress and anxiety is all that you will experience.”

      You forgot the poverty you will experience as well!

      www.bonanzle.com is where the action is now!

    • http://homebusinesshints.com Chuck Anthony

      Vinny,

      The reason I think many shareholders are sticking with eBay is because the stock is actually undervalued compared to the stock price. Value is computed from forecasted earnings per share, forecasted earnings growth, profitability, interest, and inflation rates. Value increases when earnings, earnings growth rate and profitability increase, and when interest and inflation rates decrease. At some point in time, a stock’s price and value always will converge.

      No surprise then that most market analysts covering eBay are neutral on the stock. (Source: MarketWatch) These analysts agree that the company has several issues to sort out, but the stock’s low valuation keeps many investors betting that ebay will survive.

      • Guest

        The keywords of course are “FORECASTED earnings”

  • http://www.baconsdozen.co.uk Baconsdozen

    What planet is this Donahue on?
    Donahue is to ebay what the iceberg was to the Titanic.

  • http://www.sterlingtek.com Chris

    Ebay was where I began my business in ’99 I am happy to say that it is not where our focus is now. It has always been a “high maintainance” venue, and has just gotten worse as time goes on. The new ratings unfortunately also do not reflect what is best for customers, or necessarily what is actually happening. For instance we sell among other things Motorcycle helmets. We have found that shipping them ground leads to high breakage rates, so we cut a deal with Fedex and ship them second day for $20. Try going down to Fedex and get a bulky 5 pound package sent for that. We are delivering what is best for the product and customer and an excellent price, but… What do the customers say? They think that the shipping cost is to high. We can try to hide it in the product cost possibly, but Ebay is very competitive… So our marketing dollars are simply a waste there without doing “Free” shipping. The fact is that compared to other venues Ebay is a huge amount of work for much less return.

    So I wish them good luck, and we will doing less and less with them.

    Chris

    • Justin

      If your motorcycle helmets break when you ship them you may want to consider making a stronger helmet. If its supposed to protect your brain from a windshield the UPS guy should be no problem.

  • Guest

    It began with Meg Whitman and she gave birth to and groomed John Donahoe, approving every step of the “disruptive innovation” that is not even remotely innovative. Between the two of them, they have effectively destroyed ebay.

    Destroying a very lucrative company that practically ran on auto-pilot, now THAT takes genius!

    Congratulations Meg and John, you two tie in winning the biggest moron on the planet award!

    Californians, please vote NO for meg whitman as Governor of California!

  • http://www.e-DUDS.com e-DUDS

    If eBay were positioned better, the recession would have driven more and more people to their website.

    More buyers looking for bargains and more sellers trying to make money.

    We are really trying to offer a good service to both buyers AND sellers.
    But we are extremely tiny at the moment.

    One thing I know is that we will never go down that route of scamming our own members!!

  • Knightstalkers

    Well with all the problems Ebay is having and all the tension that has existed between Google and Ebay it sure sounds like a great time for Google to start it’s own auction service. They were looking at it back in 06′ but Ebay was still very strong. Now they are not and are being threatened by some very fly by night auction sites.

    Godaddy has started it’s “Marketplace” but charging 10% for each final value fee is not winning over sellers.

    Come on Google! Get with the program!

    • Guest

      Google could and would inflict the same thing ebay has on it’s sellers… a monopoly.

      Better choice? www.Bonanzle.com

      A beautiful listing format, friendly and helpful environment (management included), no up-front listing fees at all=no risk, bring your customers, transfer your hard-earned ebay feedback to your Bonanzle profile, and the site is growing like mad!

      No, I do not work for www.Bonanzle.com
      I’m an ex-ebay seller, just like most of you… it was easy to see ebay was a winner when I found them in 1997 and it’s easy to see www.Bonanzle.com is going to be just as big, but it’s going to happen a heck of a lot faster than it took us to promote and build ebay, because there are many, many, many more of us now.

      Goodbye ebay.

      It’s so nice to have a new home!

    • http://www.roomfurniturechina.com wholesale bedroom furniture

      That crazy increase in traffic must have helped their organic listings, One thing i have wondered about is the fact that twitter converts URL’s into Tiny URL’s? Why does it do this and not just make the links ‘no follow’

  • the man

    ebay is stupid i sold a couple things on there and i owe them all kinds of money for listing fees iam talking a couple hundred dollars for miscellaneous stuff that i was selling i still haven paid them and i dont plan on it EVER i dont care either if u wanna sell something go to craigslist.com its FREE and has AMAZING traffic i sold 3 cars this week on craigslist i also fix cars and i got an ad on there for that for FREE and iam making around 1000 a week on just mechanic work and im busy 24/7 i say ebay ur dumb u had the market and u screwed it up ill tell u whyy couse all u seen was numbers not real people seriously i hope ebay goes bankrupt i really do they deserve it Also googles market thing its got going is pretty much crappy too i dont know what its called i think marketplace or soemthing if anyone can make a good ebay clone should be google so please do so thanks

    • Guest

      Two things.

      1. Learn to spell and how to construct a sentence. It is annoying and makes your message look disjointed to have to read text message abbreviations. Makes you look stupid as well.

      2. Ebay could care less about you. They demonstrate it daily with their non-competitive behaviors. They now only want big sellers and big buyers.

    • Guest

      ebay might be stupid, but anyone who lists things on there to sell without checking to see what their fees will be is far stupider. AND, if you don’t pay your fees, you’re also a deadbeat.

  • http://www.icollect247.com/creekhouse Irene Davis

    After 10 years of seeing less and less of my items selling and more and more fees, I decided to do something about it and open my a website for vintage only. Ebay’s roots were in the collectible field and now they are only want to sell new things to compete with the big box stores. While my new website is not an auction, we are offering an alternative to ebay. Check us out: icollect247.com.

  • http://nymarts.com NYM Arts

    Please now visit: nymartsDOTcom.
    Click on the REQUIRED READING links for an EYEFUL of what’s in store for Ebay this year.
    Do It Now Before you do another thing…..

    NOW !

  • Wendy

    Ebay has made life more complicated and expensive for everyone. Fees are higher for sellers, and the feedback changes are atrocious. The change in fees have caused more sellers to list their items in fixed price format, which turns buyers off.

    I notice that my fixed price listings just sit and rot (even with a best offer button), but an auction listing for the same item will likely result in a higher sale price than the fixed price listing.

    I used to sell on ebay constantly, but haven’t even been there in months now…..just not worth my while anymore.

  • http://GoogleClassifiedAds.com GoogleClassifiedAds.com

    Check out the site you can__ JOIN _for __FREE __and __SELL__ for__ FREE.__. How Site gets Paid ? by the _WIN_WIN_ System_ by Seller/buyers __Clicks on “_Sponsors_ ads_ area” __ every visitor should click 15 or more clicks that don’t cost the visitor money to sell or buy in a secure site. Also can use PAYPAL to Pay or Buy items SMART Site Growing fast ! __promo_ for _Commercial_ _STORES_ on Site for _2009_ (_has_ fee _wavier_ ON_ = N/C_) so Visit site and CLICK AWAY for Your free advertisement.. All business encouraged to USE SITE, contact SITE by clicking on the CONTACT US on site..FOR HELP GETTING Your STUFF SOLD/Advertise FREE. < ------ COMPETITION IS THE AMERICAN BUSINESS WAY --> (EBAY)

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