Jason Del Rey

Recent Posts by Jason Del Rey

eBay Meets Street’s Q2 Expectations, but Forecast Falls Short

ebay_logo_neweBay booked another solid quarter, as the marketplace and payments company reported adjusted earnings per share of 63 cents in the second quarter, right in line with analyst estimates. Revenue in the quarter totaled $3.9 billion — also on point with the Street’s estimate.

But the stock was down nearly six percent in after-hours trading to $54.05 thanks to a forecast that came in under analyst estimates.

“We had a strong second quarter, with $51 billion of enabled commerce volume across Marketplaces, PayPal and eBay Enterprise driving double-digit revenue and earnings growth,” eBay CEO John Donahoe said in a statement. “Macroeconomic headwinds in Europe and Korea will continue to be a challenge in the second half of the year. But our core businesses are strong and we continue to attract millions of new customers each quarter through mobile innovation. We remain confident in our ability to meet our goals and drive global commerce innovation and leadership.”

The company is forecasting third-quarter revenue of $3.85 billion to $3.95 billion, coming in under analyst estimates.

Ebay’s core marketplace unit grew 10 percent to $2 billion in the second quarter, while payments unit PayPal had a strong 2nd quarter, with total payment volume rising 24 percent to $43 billion. Revenue for the payments unit rose 20 percent to $1.6 billion.

Revenue from eBay Enterprise, formerly GSI Commerce, rose 11 percent to $246 million in the quarter.

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Just as the atom bomb was the weapon that was supposed to render war obsolete, the Internet seems like capitalism’s ultimate feat of self-destructive genius, an economic doomsday device rendering it impossible for anyone to ever make a profit off anything again. It’s especially hopeless for those whose work is easily digitized and accessed free of charge.

— Author Tim Kreider on not getting paid for one’s work