, the Internet’s enduring success story, may finally be showing signs of cooling off.
eBay fell more than 5% after hours Thursday after the company guided 2004 estimates lower, an almost unprecedented warning from the company.
eBay matched third-quarter earnings estimates of 18 cents a share, beat revenue estimates by $12 million with $530.9 million sales, and reaffirmed fourth-quarter estimates of 21 cents a share.
But eBay said it sees 2004 earnings as high as 98 cents a share – well under 1.05 estimates. That’s still strong growth from this year’s estimated earnings of 74 cents a share, but analysts have long been accustomed to seeing the online auction king top their estimates.
Analysts at Salomon Smith Barney had issued a rare Sell rating on eBay Monday on concern about slowing sales at eBay Motors.
eBay’s stock has been a stellar performer even as the rest of the Internet sector came crashing back to earth, and recently came within 2 points of its all-time high (63.75) set in March 2000.
Also after the close, Sun
showed no signs of reversing its troubles as the company missed revenue estimates. AMD
, and WebEx
beat estimates. Rambus
met estimates, Xilinx
missed revenue estimates, and DoubleClick
Stocks finished the day mixed – an almost amazing accomplishment considering disappointing earnings from Dow heavyweights IBM
, which fell 4%, and Caterpillar
, which lost 6%. A much better than expected Philly Fed report helped.
The Nasdaq rose 11 to 1950, the S&P 500 added 3 to 1050, and the Dow lost 11 to 9791. Volume declined to 1.38 billion shares on the NYSE, and 1.77 billion on the Nasdaq. Advancers led 19-13 on the NYSE, and 18-13 on the Nasdaq. Upside volume was 62% on the NYSE, and 61% on the Nasdaq. New highs-new lows were 297-9 on the NYSE, and 267-5 on the Nasdaq.
Solid earnings reports by a number of leading names were met with selling. Nokia
were among those trading lower despite beating estimates.
soared after beating estimates, and QLogic
rose on better than expected results.
fell on disappointing results.
rose 4.5% after selling its domain name registration business.
soared 11% on rumors of a major contract win.
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