Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : eBay - Superb Internet Business Model -- Ignore unavailable to you. Want to Upgrade?

To: Doug Fowler who wrote (522)	10/27/1998 6:01:00 PM
From: tonyt	Respond to of 7772

eBay's Slim Profit in Third Period Beat Estimates on Soaring Revenue Web Auctioneer's Shares Rose 39% Ahead of First Report as Public Firm An INTERACTIVE JOURNAL News Roundup Amid a sharp runup in its stock, online auctioneer eBay Inc. posted a slim profit in its first quarter as a public company. Revenue surged more than eightfold amid strong gains in user traffic and the number of auctions hosted. eBay posted net income of $663,000, or two cents a diluted share, up from $199,000, or one cent a share, in the year-ago period. Excluding noncash charges related to stock compensation and acquisition expenses, eBay had profit of $2 million, or five cents a share, above First Call's analyst estimate of three cents a share. Revenue rose to $12.9 million, up from $1.5 million in the year-ago quarter. The strong results came after a two-day runup in its stock price, which saw its stock rise more than $30 a share following a bullish outlook from a Wall Street analyst and investor optimism that eBay would beat official profit estimates. Tuesday, shares of eBay gained $9.125, or 12%, to close at $82.50 on the Nasdaq Stock Market, after trading as high as $90.8125. On Monday, shares of eBay surged $23.25, or 46%. The company went public in September at $18 a share. The stock's strength has lifted the entire Internet sector, boosting shares of Onsale Inc. and GeoCities, two companies that investors perceive to be in related businesses, in particular. GeoCities' shares added $6.3125, or 24%, to close at $32.875, and shares of Onsale jumped $1.50, or 8.1%, to $20. Both trade on Nasdaq. In Tuesday's report, eBay, San Jose, Calif., said sales and marketing expenses in the third quarter increased in part due to significantly increased marketing expenses and expenses related to eBay's partnership with America Online Inc. In September, eBay agreed to pay AOL $12 million over three years to make eBay AOL's preferred person-to-person on-line auction service. The company said it hosted over 9.2 million auctions during the third quarter of 1998, up from 6.6 million in the second quarter. Registered users increased 400,000 in the quarter to more than 1.2 million. In the quarter, eBay recorded certain noncash charges of $818,000 and $515,000 related to the amortization of stock compensation and of acquisition-related expenses, respectively.