Wednesday, January 24, 2007

eBay Q4 Earnings Announcement

eBay's quarterly net profit rose by 24% YoY and eBay announced an additional $2 Billion stock buyback (according to CNBC) That should prop the stock up very nicely.

2 comments:

bonni said...

How did they manage this, do you think? Just the Christmas season... ? Creative bookkeeping? Seriously, I'm quite surprised to see an actual increase of that size. Wouldn't have been surprised by a "break even" sort of thing, but that's a pretty hefty percentage for a site that's struggling with as many issues as eBay is...

Randy Smythe said...

Bonni, I think it was a number of things. EPS was helped by the share buyback. They bought back over $2 Billion dollars worth of stock in the second half of the year. The value of the dollar helped. PayPal grew 34% and that helped and the bidding wars for the PS3 and Nintendo Wii helped in the Marketplace biz.