Ebay shares fall as CEO to resign

Ebay stock fell more than 5 per cent after it warned 2008 results would fall below Wall Street expectations and said chief executive…

Ebay stock fell more than 5 per cent after it warned 2008 results would fall below Wall Street expectations and said chief executive Meg Whitman would step aside.

Ebay shares had closed up 6.7 per cent at $28.94 in Nasdaq trading on news the CEO change was imminent, but before the results. After the report, the stock fell 5.6 per cent to $27.58 in extended trade.

The share price has fallen by half from a peak in late 2004.

The company forecast accompanied solid fourth-quarter results, however, and analysts said it was unclear if the company feared an economic slowdown or whether management was giving itself room to make changes to revitalise the business.

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Growth in the main auction business has slowed during the past three years.

Auctions chief John Donahoe will take over from Ms Whitman at the end of March. Ms Whitman is to remain on Ebay's board of directors and take on an advisory role.