EBay shares fall after weak revenue forecasts for the current quarter

EBay shares fall after weak revenue forecasts for the current quarter
EBay shares fall after weak revenue forecasts for the current quarter

EBay Inc. fell after giving a weak forecast for the current quarter, reinforcing investor concerns that the one-time pioneer continues to lose relevance in a maturing e-commerce market full of competitors.

EBay forecasts earnings of between $1.10 and $1.15 per share, with revenue of up to $2.54 billions in the current period ending in June, the company said Wednesday in a statement. Analysts, on average, estimated a profit of US$1.14 per share on sales of US$2.56 billion.

After losing significant market share in the US in recent years to Amazon.com Inc. and Walmart Inc., eBay has focused on auto parts, luxury goods and refurbished appliances to stand out in the tight e-commerce sector. The strategy has shown promise, as those categories have grown faster than the company’s entire online marketplace in recent quarters.

Shares fell about 5% in extended trading after closing at $51.06 in New York. Shares are up about 17% this year.

Gross merchandise volume, the value of all goods sold on eBay, rose 1% to $18.6 billion during the quarter, surpassing the average analyst estimate of US$18.4 billion. The company, based in San Jose, California, reported having US$131 million in active buyers in the quarter, unchanged from the previous year.

First quarter profit was $1.25 per share, with sales of $2.56 billion. Analysts estimated US$1.21 with sales of US$2.53 billion.

 
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