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Call it the PS3 Effect

This was obvious:

EBay Profit Increases 24 Percent

SAN FRANCISCO -- EBay Inc. reported Wednesday that fourth-quarter profit increased 24 percent from the same period last year, trouncing Wall Street estimates and prompting executives to raise estimates for the current quarter.

Thanks to scorching holiday sales _ particularly in eBay's traditional strongholds of the United States, United Kingdom and Germany _ the San Jose-based online auction company earned $349 million, or 25 cents per share, for the three months ended Dec. 31. It earned $279 million, or 20 cents per share in the year-ago period.

EBay shares increased $1.38, or nearly 5 percent, to close Wednesday at $30 on the Nasdaq Stock Market before the earnings report was released. It jumped to $33.05, up an additional 10.2 percent, in after-market trading.

"It was a very strong quarter capping a very strong year," eBay President and Chief Executive Meg Whitman said in a brief phone interview with The Associated Press when the results were released.

With tens of thousands of PS3s sold on ebay, many for over $2000 it was pretty obvious that ebay was making more money off the PS3 launch than Sony.

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Comments (1)

The past quarter definitely... (Below threshold)
Next Auctions Article:

The past quarter definitely saved eBay's stock price. As an online auctions site currently on the stage of decline, eBay was on a verge of collapse due to its competition with Google and also it's failing strategy in Asia.




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