Diamonds and Dogs

3/25/13

eBay Inc. (EBAY)

eBay is auctioning off its shares at a discount today, down 3.68% at $51.31. The online auction site saw its shares decline after continued worry from investors regarding the company's PayPal unit. The worry surrounding PayPal stems from new fees being charged by Visa and Mastercard and how these fees will affect PayPal. Furthermore, eBay is hosting its analyst day on Thursday which could be good or bad for shares depending on the company's forecast during the meeting. Stifel Nicolaus analyst Jordan Rohan said, "[eBay's management is smart enough to announce a forecast that is] just enough to keep shares steady while showing solid growth and market share gains in both marketplaces and payments."

Apollo Group Inc. (APOL)

Apollo Group is teaching its shares to climb higher today, up 7.10% at $18.25. The online campus and educational service company (well known for the University of Phoenix online) saw its shares pop after Apollo forecast higher profits than expected. Apollo's forecast for the year called for net revenue of $3.65 billion to $3.75 billion on operating income of $500 million to $550 million. Analysts, on average, were expecting current-year revenues of $3.73 billion. The company's prediction was a surprise to most investors especially since Apollo is facing higher marketing costs and a 15.5% decrease in enrollment. Apollo Group is still well below its 52-week high of $43.80.

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