Analysts were expecting eBay’s earnings to decline in Q408, per Marketwatch, and they did: net income came in at $367 million, or $0.29 per share — down 31 percent from $531 million in Q407. Revenues reflected a poor holiday shopping season, coming in at $2.04 billion, down 7 percent from $2.1 billion in Q407. Still, Wall Street was hoping for a slightly better performance, and the stock tumbled $0.78, or nearly 6 percent, in after-hours trading.
Ebay’s core online auction business has been battered by the economy; the company laid off about 1,000 workers in Q4. It also faces greater competition from Amazon (NSDQ: AMZN) and smaller auction sites, as its attempts to squeeze more revenue out of sellers have driven them toward platforms with less overhead. New CEO John Donahoe has promised to revamp the site to beat back this threat.
— Skype : Skype’s Q4 revenues came in at $145 million, up 26 percent year-over-year, but up only marginally over the last quarter. The company said it added 35 million new users over the quarter.