eBay Tries to Mix Up the Balance
EBay reported quarterly earnings Wednesday that met Wall Street’s expectations, but warned that the mix of items for sale in online auctions vs. online stores hosted by eBay was out of balance and needed to be fixed.
Investors saluted eBay’s candor with a wave of after-hours stock purchases that lifted the company’s slumping share price more than 5 percent. In regular trading, eBay had closed Wednesday at $25.93, down 2.5 percent.
Earlier in the day, eBay had appeared caught in the tailspin that sent shares of Yahoo, one of eBay’s closest industry partners, down almost 22 percent to $25.20 in the wake of a disappointing earnings announcement Tuesday.
The San Jose auctioneer reported net income of $250 million, or 17 cents a share, for the quarter ended June 30, a decline of 14 percent, in part because of new rules on expensing stock options. EBay reported net income of $291.6 million or 21 cents a share for the same period a year ago.
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