Ebay Spiral of Death Continues, Profits Fall, Shares Sink

The rough times for Ebay just keep on coming.  Profits are falling, shares are sinking, human sacrifice, dogs and cats - living together.

EBay, Inc. posted lower 4h quarter profits and revenue figures today and gave a weaker-than-expected forecast for the first quarter of this year as spending decreases, sending its shares down 6 percent.

The global recession has damaged eBay's ability to gain buyers, and the strengthening of the dollar also stunted profit from its overseas operations.

"Clearly we've been operating in an almost unprecedented external environment," Chief Executive John Donahoe told analysts. "There is no doubt eBay was impacted by the macro-economy."

Analysts said the company's 1st quarter analysis, which came in way under Wall Street estimates, was a grim sign. Jeffrey Lindsay of Bernstein Research called it "a pessimistic guidance for 2009."

"The real story is they are guiding down a lot," he said.

There's an understatement.  Is this the beginning of the end for eBay?  Only time will tell.

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