eBay Q3 earnings beat expectations but weak Q4 revenue guidance causes 9% stock drop

From CNBC: 2024-10-30 18:23:00

Shares of eBay dropped by 9% in after-hours trading following the release of their third-quarter results. The company reported earnings of $1.19 per share, beating expectations by $0.01, and revenue of $2.58 billion, slightly above the $2.55 billion forecasted by analysts. For the fourth quarter, eBay expects revenue between $2.53 billion to $2.59 billion, below the average analyst estimate of $2.65 billion.

eBay has been facing stiff competition from e-commerce rivals like Amazon, Walmart, and Etsy, as well as new low-cost entrants with Chinese ties. To attract users, eBay has focused on categories like collectible sneakers, used luxury goods, and auto parts. The company has also introduced AI tools to provide personalized recommendations to shoppers and streamline seller listings.

eBay CEO Jamie Iannone attributed the weak guidance to various factors, including hurricanes, distractions from the U.S. presidential election, and a shorter holiday shopping season. Despite these challenges, eBay has seen momentum in user engagement and remains confident in its trajectory. The company reported a 2% year-over-year growth in gross merchandise volume, reaching $18.3 billion.

Deloitte’s survey suggests that volatile weather and election distraction will impact holiday shopping trends. Amazon has also cited similar factors for its weaker guidance. Despite the challenges, eBay remains optimistic about its performance and consumer appeal, especially in providing value during challenging economic times.



Read more at CNBC:: EBay Q3 earnings report 2024