EBay's fourth-quarter profit forecast disappoints, shares fall
Ebay logo is seen in this illustration taken February 11, 2025. REUTERS/Dado Ruvic/Illustration
E-commerce firm eBay forecast profit for the crucial holiday quarter below Wall Street estimates amid ongoing macroeconomic uncertainty, sending its shares down nearly 6 per cent after the bell on Wednesday.
Tariffs and changes to certain customs requirements in the U.S. have created significant uncertainty for small businesses, while concerns over escalating prices for imported goods have weighed on consumer confidence.
The stock slide suggests that investors were not buying eBay's growth bandwidth behind the reported quarter's revenue and profit beat, said Michael Ashley Schulman, chief investment officer at Running Point Capital.
EBay's third-quarter revenue came at $2.82 billion, while adjusted profit was $1.36 per share, both beating Wall Street estimates of $2.73 billion and $1.33 per share, respectively.
Analysts, however, have raised concerns about the sustainability of eBay's recent growth. The collectibles category, a key driver of recent performance, remains difficult to forecast, prompting questions about growth prospects heading into 2026, especially if demand moderates, they said.
EBay forecast adjusted earnings between $1.31 and $1.36 per share for the fourth quarter, below analysts' average estimate of $1.39 per share, according to data compiled by LSEG.
It, however, sees revenue in the range of $2.83 billion to $2.89 billion for the quarter, above the estimate of $2.79 billion.
The company expects fiscal 2025 revenue to be between $10.97 billion and $11.03 billion, compared with analysts' expectation of $10.85 billion.
