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eBay profits sink as transactions dwindle

The ranks of active eBay users continued to swell in the fourth quarter, but the company's gross merchandise volume - the actual amount of business eBay users are doing - sank for the second quarter in a row.

23 Jan 2009

eBay's fourth-quarter earnings fell 31%, indicating that its Internet auctions and "Buy It Now" offerings are being hurt by the recession just like traditional retail sales.

The results, combined with a forecast below analysts' expectations, sent eBay shares skidding more than 6% in after-hours trading.

Read the full article here.

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