#EBay #Stock #Sinks #Concerns #Holiday #Shopping #Season
Key takeaways
- EBay’s guidance for the key holiday shopping season didn’t impress investors, and shares fell Thursday.
- The e-commerce company beat estimates for earnings, sales and gross merchandise volume in the third quarter.
- Analysts at Jefferies and Deutsche Bank raised concerns about the company’s gross merchandise volume in the fourth quarter.
EBay ( EBAY ) shares fell on Thursday, a day after the online marketplace provided weaker-than-expected guidance for the key holiday shopping period.
The company expects fourth-quarter adjusted earnings per share (EPS) of $1.17 to $1.22 and revenue of $2.53 billion to $2.59 billion. Analysts surveyed by Visible Alpha were looking for $1.21 and $2.58 billion, respectively.
In the third quarter, adjusted EPS came to $1.19, with revenue increasing 3% year over year to $2.58 billion. Gross merchandise volume (GMV) rose 2% to $18.31 billion. All three exceeded expectations.
Jeffries says “cracks are starting to form.”
However, Jefferies analysts wrote in a note to clients that they were “reviewing our model” following the results, warning that “cracks” were “beginning to form.” “Failure to achieve a tangible acceleration in the fourth quarter’s total value would raise questions about the durability of growth and make us more cautious,” they noted. Deutsche Bank analysts added that “tepid GMV growth forecasts shake confidence” in eBay’s growth.
Despite today’s 8% decline in late morning trading, eBay shares have added about a third of their value this year.
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#EBay #Stock #Sinks #Concerns #Holiday #Shopping #Season
