EBay slashes sales forecasts for 2008
EBay Inc, the world's biggest Internet auctioneer, reduced its annual earnings forecast and projected its first quarterly sales decline as growth slows at the company's namesake websites.
EBay forecast fourth-quarter revenue of $2.02 billion to $2.17 billion, compared with $2.18 billion a year earlier. The value of goods sold on EBay's sites fell 1 percent in the third quarter, the first drop in the company's history, as international markets declined as much as the United States. The results are a blow to Chief Executive Officer John Donahoe, who in six months at the helm has made acquisitions to bolster secure payments unit PayPal, overhauled fees, enhanced protections and offered credit to boost listings amid heightened competition and stalling growth at its Internet marketplaces.
"EBay enjoys a global leadership position in e-commerce, but buyer and seller expectations have been rising and we've not kept up," Donahoe said in a conference call with analysts after the announcement.
