Despite posting strong profits recently, auction site eBay, taking a look around it at the blitzed financial landscape, is predicting sluggish winter holiday season in a slowing global economy.
eBay reported third-quarter earnings of US$492 million in the third quarter, after posting loss of $936 million in the same period last year. The San Jose, California-based company's revenue rose 12 per cent to $2.12 billion in the quarter.
But, despite the good figures, eBay warns that consumers, forced to be Scrooge-like by ecomonic imperative will buy less online this year - and this will impact eBay's bottom line.
As a result, the company has lowered its forecast for the remainder of the year and now expects 2008 revenues to total somewhere between $8.53 billion and $8.68 billion, rather than the $8.8 billion to $9.05 billion it had earlier anticipated.
eBay's chief executive, John Donahoe, speaking in a conference call with reporters said, "We expect a very challenging fourth-quarter holiday season for consumers who will be cautious with their spending.
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