INSTANT VIEW: EBay shares slide

LOS ANGELES/SAN FRANCISCO (Reuters) - EBay Inc (EBAY.O) Wednesday forecast a fourth-quarter profit at the low end of Wall Street estimates, disappointing investors looking for a clear turnaround at its main marketplaces division during the crucial holiday season.

COMMENTARY:

LARRY WITT, ANALYST, MORNINGSTAR

"It looks pretty good to me relative to how they have performed the last year or so -- for the first time they have reported top line revenue growth, year over year.

"EBay has guided pretty conservatively and often beat the guidance, so we don't tend to follow their guidance too closely.

"Times seem to be getting better, revenue growth is back. The options business looks like it is still declining and will for some time, but is not as bad as it has been.

"They break gross merchandise volume into three parts and all three of them looked better.

"If you look at fixed price, it is a pretty solid growth rate, at 37 percent. Part of that was boosted by their acquisition of GMarket, but take that out and it is still up 17 percent, an acceleration from the previous growth rate.

"Auction was down but the previous three quarters were down more. Even vehicles was down 15 percent, but the prior three quarters were down 25, 27 and 24 percent.

"There is some effect from Skype (because of the assumption it will be sold) but in reality it is a pretty small piece of the business. I would be more concerned at this point that they can't sell it."

STEPHEN JU, ANALYST, RBC CAPITAL MARKETS

"The fourth quarter guidance is in line with expectations. The fine print here ... is that they are assuming a mid-quarter sale of Skype, so the guidance does not include half-a-quarter of the Skype contribution. Skype's run rate is about $200 million per quarter, so the revenue guidance is about $100 million too low.

"It's all Skype. This is a beat and raise quarter. And if you look at the underlying metrics -- an acceleration in the number of sales both domestic and international -- that is what matters. The turnaround is in full play. I'd be buying on the dip."

TIM GHRISKEY, CHIEF INVESTMENT OFFICER, SOLARIS ASSET MANAGEMENT

"The whisper on eBay was higher than the consensus earnings estimate, and this has happened to a number of stocks over the last week. The first couple of earnings reports that came out were very strong, and that really seemed to increase the whisper numbers.

"It wasn't a bad quarter for eBay. What we saw that was positive was the revenues beat the consensus, not by a huge amount, but this has been a stock that has performed well. Traders expected more progress here."

JEFFREY LINDSAY, ANALYST, BERNSTEIN RESEARCH

"The size of the negative reaction is a bit surprising. We have seen this before -- a very abrupt drop, and then it comes back. It went to minus eight and now it is back to 4.5.

"The guidance is a little bit less than consensus. EBay has a long history of providing very conservative guidance and then beating it, but people were hoping for evidence of much more recovery.

"All the basic metrics up." Gross Merchandise Volume "is up impressively."

COLIN GILLIS, ANALYST, BRIGANTINE ADVISORS:

"Just from the top line metrics, they look fine. Shares are up 80 percent year-to-date.

"This is not a monster beat, but decent numbers.

"Certainly the Q4 earnings guidance is light ... It's a little bit of sell the news, especially since there is not a monster beat (on third-quarter earnings). This is a turnaround play in the early stages.

"Marketplace, where a lot of the eyes should be turning to, did OK.

"The range they gave (for the fourth quarter) straddled my estimates. Let's not forget we have 10 percent unemployment. It's not all rosy."

(Reporting by Lisa Baertlein in Los Angeles, David Lawsky in San Francisco and Caroline Valetkevitch in New York, compiled by Edwin Chan)