Early Buzzers: Apple Sinks on iPhone Shortages, Facebook Grows on Positive Words
Shares of eBay (NASDAQ:EBAY) are wavering after the company reported financial results for the third quarter. Net income increased 21.7 percent to $597 million (45 cents per share), compared to $490.5 million 37 cents per share) a year earlier. However, it fell short of the mean analyst estimate of 47 cents per share. We had a great third quarter across our company, with Marketplaces and PayPal accelerating customer growth,” said John Donahoe, eBay President and CEO. “Mobile continues to be a game changer for us, and we continue to be a clear leader in mobile commerce and payments.”
American Express (NYSE:AXP) shares edged slightly lower in early trading. The company said net income for the third quarter came in at $1.25 billion ($1.06 per share), compared to $1.24 billion ($1.03 per share) a year earlier. “We generated solid results this quarter against the backdrop of a very uneven global economy,” said Kenneth I. Chenault, chairman and chief executive officer. “Bottom line results were driven by higher revenues and lower expenses, a combination that reflects ongoing efforts to contain operating costs while maintaining a substantial level of investment in our marketing and rewards programs.” Mastercard (NYSE:MA) and Visa (NYSE:V) shares were mostly unchanged after the results.
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Apple (NASDAQ:AAPL) shares are trading down after Hon Hai Precision, the sole producer of the iPhone 5, said the device saw a shortage in supply because it was extremely hard to manufacture. An executive of the company also told The Wall Street Journal that some of the recent conflicts at one of its facilities may have been sparked by the increased quality checks during the manufacturing process of the new device.
Shares of Facebook (NASDAQ:FB) closed 2 percent higher on Wednesday, and continue to climb in early trading today. The social media company received positive words from Wedge Partners. Analyst Martin Pyykkonen said the company is “further along in monetizing mobile advertising” than many realize. Facebook also opened up its mobile “apps install” ads platform to the public. Previously, only a selected group of developers had access. An announcement on the company’s development blog states that beta partners and Preferred Marketing Developers who had early access have seen good results with the ad structure.
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