EBay shares drop on holiday worries
The stock sinks on a cautious outlook. Executives cite a 'rapid deceleration in the market.'
By Christopher Freeburn
Shares of online auction giant eBay (EBAY) sank more than 3% Thursday after the company signaled that it expects a weak holiday shopping season.
During the third quarter, eBay earnings totaled $689 million, up from $597 million during the same time last year. Adjusted per-share earnings of 64 cents slightly topped Wall Street estimates, The Wall Street Journal notes.
Despite the good news, the company's chief financial officer said eBay has noticed "a pretty rapid deceleration in the market," which suggested a cautious outlook for the holidays. CEO John Donahoe noted that retail sales were headed lower during the third quarter and that recent political squabbles in Washington had increased uncertainty.
The company recorded $3.89 billion in quarterly revenue, with its online marketplace generating $2.03 billion. That matched analysts' forecasts.
Its online payment service, PayPal, continued to perform well, with revenue rising 19% during the quarter. The service saw its number of users rise 4% compared to the prior quarter to 137.4 million. Ebay acquired PayPal for $1.5 billion more than a decade ago.
More from InvestorPlace
I still buy if the deal is good. But lately I'm seeing crazy prices on used electronics reaching almost what you can buy new for. $10 less for used is not a deal, pay the extra $10 and get new. But thats not ebays fault, its the bidders who don't have enough sense to shop around.
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
With the universe of this category in its seasonal sweet spot, these picks have tailwinds propelling them into the new year.
VIDEO ON MSN MONEY
Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.
Contributors include professional investors and journalists affiliated with MSN Money.
Follow us on Twitter @topstocksmsn.