Apple and Twitter are pummeled, eBay up after results

Investors pummeled the shares of Twitter and Apple after the two high-profile tech companies reported disappointing financial results, but Wall Street raced to bid up the shares of eBay, which jumped after a robust set of results.

The dismal results from Apple and Twitter also weighed on the tech-focused Nasdaq, which sagged more than 1 percent in the early hours of trading, while the broad-based S&P 500 Index and the blue-chip Dow Jones Industrial Average slipped only 0.4 percent.

But the real damage came for the shares of Twitter and Apple.

Apple tumbled 6 percent in mid-session trading and San Francisco-based Twitter nose-dived by about 15 percent.

In contrast, eBay hopped 3 percent higher.

Apple jolted investors when it disclosed its first decline in quarterly revenue in a decade, with sales totaling $50.6 billion for the fiscal second quarter, a 13 percent decline from the year ago quarter. Profits totaled $10.5 billion, down 22 percent from a year ago.

Both sales and profits missed Wall Street expectations by a mile. Yet it may have been Apple’s slump in iPhone sales that really soured investors on Apple’s shares.

Cupertino-based Apple sold 51.2 million iPhone units during the which was down 16 percent from the year-ago quarter. That represented the first year-to-year sales setback for Apple’s primary product since the iPhone debuted in 2007.

San Francisco-based Twitter confronted investors with an even more dismal set of numbers for its first quarter, and then intensified the gloom with a dreary outlook for the social network.

Twitter posted an operating loss of $59.1 million, which was far smaller than the year ago operating loss of $146.6 million.

The microblogging site did report a sturdy rise in monthly average users, reporting 310 million at the end of March, up from 305 million monthly average users at the end of December.

Investors had been worried about Twitter’s usage statistics after it had suffered in final three months of 2015 its first-ever decline in monthly average users.

But the latest results brought a fresh set of fears to unnerve Wall Street. Twitter rattled investors when it revealed stagnation in its advertising business. And that undermined revenue, which totaled $594.5 million, well below estimates of $607 million. Twitter also offered a grim outlook of $590 million to $610 million in second-quarter revenue, far below estimates of $678 million.

San Jose-based eBay enchanted Wall Street with sales and profits that topped Wall Street’s view. eBay posted operating profits of $482 million and revenue of $2.14 billion. The operating profits were up 7 percent and revenue rose 4 percent.

For the second quarter of 2016, eBay projects revenue will range from $2.14 billion to $2.19 billion, and per-share profits, after certain items, to range from 40 cents to 42 cents. Analysts predict sales will be around $2.14 billion and profits should be 44 cents a share.

“We delivered our third quarter in a row of solid results,” Devin Wenig, eBay’s chief executive officer, told analysts during a conference call to discuss the financial report. “Our business continues to consistently grow.”

Photo: Apple, Twitter, eBay images from company site

 

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  • adam_hartung

    Is there any hope for Twitter shareholders? The stock is down 60% since the Board replaced Costolo as CEO. Forbes said at the time making the change was a poor call http://onforb.es/1qYi3bw . One quarter of declining sales is not predictive, but 2 consecutive quarters leads to a growth stall – and Forbes warns that could be deadly for Apple investors http://onforb.es/26xoJhq

  • .I must be watching a different ticker; I see no rise in eBay’s share price …

    “There are a lot of questions out there and I don’t have any of the answers,”—eBay CEO Devin Wenig, Goldman Sachs Technology And Internet Conference, 10 Feb. 2016.

    Notwithstanding the otherwise constant stream of disingenuous and delusional nonsense that flows from eBay/PayPal, the share price history of these two clunky operators demonstrates the reality:

    Aug 2007: (pre John Donahoe) EBAY ~$40; AMZN ~$40;
    Jul 2015 (pre eBay-PayPal split): EBAY ~$66; AMZN ~$480;
    Jul 2015 (post-split): PYPL ~$37; EBAY ~$28; AMZN ~$530;
    Currently: PYPL ~$40; EBAY ~$24; AMZN ~$600—LOL

    PayPal is standing still, and eBay has for years been effectively going backwards—at a steady rate of knots.

    And, notwithstanding the “spin-off” of PayPal from eBay, eBay and “PreyPal” remain effectively joined at the hip—for at least the next five years—and anyone that thinks otherwise is simply uninformed; and, thanks to a continuation of most of the destructive policies introduced over the eight year reign (2007–2015) of the “Pain from Bain”, John Joseph Donahoe II, the eBay marketplace is continuing on its slow journey down the toilet; nevertheless, during Johnny Ho’s occupation of the eBay corner office, this cretin and his gang of hand-picked Keystone Kops still managed to obtain for themselves massive, unearned, “performance” bonuses—while the company’s “long” shareholders received not one penny.

    PayPal’s one-time adoptive parent, eBay, is likely the most unscrupulous commercial entity operating on this planet; but, have no fear, eBay is an equal-opportunity fraudster; demonstrably, they will knowingly aid and abet the defrauding of buyers by unscrupulous eBay merchants who bid on their own auctions, and, conversely, of honest sellers by unscrupulous buyers—as long as there is a financial benefit in such fraud for eBay.

    eBay’s auction format has been atrophying ever since 2008 when the cretinous Johnny Ho further anonymized bidder IDs to better hide, and further aid and abet, demonstrably rampant shill bidding fraud on consumers by unscrupulous sellers. As time has passed, fewer and fewer people remain naïve enough to still believe that, contrary to its claims, eBay has ever had any intention of protecting consumers from such rampant auction fraud—from which eBay profits. eBay is not concerned about “fraud” unless it impacts eBay; eBay has only ever been interested in their FVF, regardless of whether or not the transaction is a fraudulent one. And, a few years ago, eBay raised their final valuation fee (FVF) to 10%, and also removed the fee tiers that moderated the fee paid on higher value items. And so, eBay as a whole has likewise, and deservedly, continued to atrophy.

    In early January eBay invited consumers to auction their unwanted Xmas gifts on eBay. And, if you didn’t know what your unwanted gift may be worth, eBay’s advice was to start the auction at 99c and watch the fun—as your item likely sold for 99c—always presuming you weren’t bidding on the auction yourself (and assuming that you or anyone else was able to find the listing in eBay’s manipulated search), in which case you would likely finish up buying it yourself; but that’s OK with eBay too; they don’t mind whether the sale is real or faux, as long as they get their final valuation fee.

    The eBay executive suite—where the incompetent mingle with the disingenuous, the unscrupulous, the malevolent, the outright criminal, and the just plain stupid.

    For a detailed analysis of the ugly reality of eBay’s demonstrable, calculated, facilitation of endemic shill bidding fraud on consumers on its auctions marketplace—Google “Shill Bidding on eBay: Case Study #5”

    And, goodbye clunky PayPal—it’s not been nice knowing you either—Google “Retail Payments: The Reality”

 
 
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