Internet News Internet Investing Internet Technology Windows Internet Tech. Be a Partner Internet World Reg. Yes, infrastructure spending over the next few months will affect eBay's earnings and operating margin in the short-term. But eBay is doing the right thing by attacking its biggest problem head-on, and that should become clear in the long run. Q3 results met or exceeded analysts' expectations.
Growth continues unabated.
The 36.2 million auctions hosted by eBay in Q3 are nearly four times the 9.2 million it hosted in the same quarter last year. The company has built this commanding lead in spite of its technological woes, which have cost it more in terms of bad publicity than lost revenue or customer defections. That's because buyers and sellers realize that, even with the occasional outage, eBay's is the biggest and best auction marketplace on the Web. But it would take a serious stumble by eBay for anyone to significantly eat into its market lead. The best way for eBay to protect its position is to invest in its infrastructure, even at the expense of short term financial results.