Laurie Flynn of the NY Times reports that 3rd quarter earnings at eBay increased by 5%. No doubt a good sign. But, eBay has also lowered expectations for future earnings. So in effect the results are mixed.
Flynn reports "For the first time, eBay’s gross merchandise volume, the total sum of all transactions on the eBay Marketplace, declined. It was the biggest disappointment in eBay’s announcement of its third quarter financial results. Considered a key measure of growth for the company by analysts, volume fell 1 percent in its third quarter from the same period last year to $14.28 billion. Volume had increased 8 percent in the second quarter, which itself had marked a dramatic decline from the robust double-digit growth of earlier periods."
Flynn continues "EBay, once primarily a marketplace for high-end unique merchandise sold in online auctions, has in recent months found itself increasingly vulnerable to the consumers pulling back on spending. It has started shifting to fixed-price sales, improving service and beefing up its other businesses."
At the end of the year eBay is also pulling out of the on-line auction platform business to concentrate on its core business. EBay also plans on laying off 10% of its workforce of 16,000 employees. EBay has some division which are showing signs of growth, such as PayPal, Skype , StubHub and Shopping.com. But the core auction business is within the eBay marketplace has shown declines.
To read the full NY Times article, click HERE.