Ebay's latest earning report

I didn’t expect Ebay performing so well. 6% on the ER day and 10% after 5 days of ER, good momentum. Apparently, investors like what they hear despite lukewarm analyst reaction. Some information for you on Reuters: http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=EBAY.O&timestamp=20101020201500 (eBay Inc. Issues Q4 2010 Guidance; EPS Guidance Above Analysts' Estimates; Raises FY 2010 Guidance)

Remember, outlook is always the most important factor on ER stock price action. Revenue beat is the second, EPS beat is the third in my opinion. (it may depends on the firm characteristic or pre-ER expectations, etc)

 As I look through the quarterly financial performance of Ebay as a whole I really didn’t see anything that upbeat (hope you can agree with me after viewing the table) Although, investors definitely like the growth in Paypal and I agree with them. It’s indeed convenient. As far as online commerce, I actually prefer Amazon. And I’m afraid there are many people just like me. However, one shining point is enough for the stock to run for a while. In addition, probably the weaken dollar is also helping too since more than 50% of revenue is from international (the reporting currency is in US dollar and the number will be bigger as dollar depreciates). Short term bullish at least. If Ebay manages Paypal well, I’ll be long term bullish. As you might notice that some credit card companies start to have concerns on Paypal as competition, good sign for Ebay. 

Ebay's annual finanical performance does show a good trend on profitabilities. Let's see how they do when next annual report gets out (based on the guidance it will do well as I guess.)

Analysts' opinion stay lukewarm till now.