I have a more pragmatic approach to results....
Quarterly reporting gives an overview of a company's progress four times a year - providing an analysis of various financial elements that require a process that examines many factors not immediately as visible, nor as straightforward as share price.
Looking at a single quarter and blowing trumpets (or horns of doom) is just a blinkered approach. It's the sort of thing politicians, the media or those in awkward positions will brandish with a flourish, fanfare and fanaticism that will paint a rosy picture to all who just listen to the carnival music and believe what's said, rather than examine the detail and find out what is NOT said.
If I were to be an investor in such a company, I would start with no less than 5 years of such 'quarterly' reporting since the individual results are only a part of what is important.
If I were investing for retirement income, I would want to see the dividends -
over time - so I could assess the risk, severity and impact of the times of feast and famine.
If I were investing for capital growth, I would like to see those backbone figures so I could judge the volatility and future prospects. Again, a single set of figures isn't going to give me much of a feel.
Profitability is just one measure - but even the patient will need to know if it is abnormal, sustainable or otherwise ... and that takes historical results.
In truth, I am not overly surprised that the results are reasonable and from my naive thinking, I would put the next two quarters (possibly) up for the basket of roses award. This is not because I am thinking eBay is heading in the right direction at all - but the natural result from the actions Donahoe has taken to capitalise on short term gains. Whilst the seller community hangs in, there will be more opportunity for these short term gains to continue - but as the screws get tightened more and more, sellers will take action to protect their businesses.
There are already sellers who have implemented solutions on their own web sites and others who are in the process of doing so - which will take more of the buying public away from eBay. Perhaps not removing eBay from their lives altogether, but at least from exposure to other sellers in a particular product line.
Now this is serious business that eBay will lose - good sellers looking after good buyers equates to good money, no hassle money, that eBay is simply alienating.
It is my belief that this emigration will build as those sellers who were 'gunna do something' have had the time to work out what and now see it is time to act.
I'll be particularly interested in the Q3 and Q4 results for
this year....
poddy, share trading is the exchange of wealth from the impatient to the patient.
The patient could be those who 'cash out' now and bide their time to buy back in when the share price drops again, couldn't they?