Shares in eBay tumble 10%

SHARES in eBay fell 5% on Wall Street last night as a the online auctioneer's results failed to impress.

Second quarter profits more than doubled to $190.4m (£102.6m) but the company said full-year results would be below expectations.

A costly push into developing markets such as China and India that have little internet access also gave investors the jitters.

Shares in eBay fell nearly 10% Wednesday, including a 5% fall after the earnings were released. The shares closed at $76.60.

It also revealed that 'general and administrative' expenses - including payments to some accountants, lawyers and consultants - jumped to $102.9m, up from $69.5m in the same period of 2003.

Second-quarter transaction revenue in the US was $319.1m, up 32% percent from the same quarter of 2003, but down 2.2% from the record first quarter of 2004.

The company said sales were settling into a seasonal pattern typical of mature retailers. 'There's no question seasonal trends are becoming more pronounced as eBay becomes more mainstream,' said chief executive Meg Whitman.