TECHNOLOGY Analysts fear slower growth for eBay, despite high profit

EBay's stock price fell despite 69-percent increase in profits.
SAN FRANCISCO (AP) -- Profits surged again at eBay Inc., but its third-quarter performance wasn't strong enough to quell fears among Wall Street analysts that the online auction leader is facing slower growth.
The technology giant said Thursday that profits leaped to $103.3 million, or 16 cents per share, in the quarter that ended Sept. 30. In the comparable period last year, eBay showed net profits of $61.0 million, or 11 cents per share.
That amounted to a 69-percent increase in profits. Meanwhile, revenue surged 84 percent to $530.9 million.
Still, eBay stock plunged more than 6 percent in the extended session Thursday after closing at $57.50 on the Nasdaq Stock Market.
Excluding one-time items such as construction or expansion of international customer service centers, eBay reported "pro forma" earnings of 18 cents per share.
Executives of the San Jose, Calif.-based company credited double-digit profit and revenue increases to international sales, particularly in Germany, England and South Korea.
Chief financial officer Rajiv Dutta hinted in a conference call with analysts that eBay, known for its financial conservatism, may embark on a buying spree next year with some of its $2.6 billion in cash.
"We have enormous potential," Dutta said.
Room for doubt
Despite such optimism, several prominent investment researchers expressed doubt this week over whether the auction giant can continue its tradition of exceeding expectations. EBay stock has remained relatively impervious to the bursting of the dot-com bubble and remains one of the highest valued technology stocks.