Q1 results are in

The Q1 figures are in for Google and eBay. eBay did OK but it is no doubt who the new star is. Google's earnings were six times higher than Q1 2004. Six times! EPS of $1.12 was 20 cents ahead of analysts' estimates. The shares are up almost 10% in after hours trading. It looks like at least one of the members of my portfolio is going to be in the black for the forseeable future. I won't be going for a quick sell with Google - the future is too bright. If things continue like this then $300 by the end of the year is possible.

eBay's results were slighly better than analysts' estimates and guidance was increased slightly for the year. Profit was up 28% year on year and margins were improved slightly. The Chinese market is growing strongly but growth in the USA and Germany is slowing down. However I think the most pertinant statistic was the table of year on year growth for the last five quarters. The figures go like this: 59%, 51%, 51%, 43%, 36%. So in one year eBay has gone from an astounding 59% growth rate to a much more mature 36%. No wonder sentiment has changed so much. I am just glad I sold my shares when the trailing P/E was well over 100 as I don't think we will be seeing those days again. Unfortunately I bought back in a bit too soon but eBay will be OK in the long run.