Wed Feb 26 21:10:00 UTC 2025: **eBay Stock Plunges After Disappointing Revenue Forecast**
SAN JOSE, Calif. (Reuters) – Shares of eBay (EBAY) fell 7% in after-hours trading Wednesday following the company’s release of a first-quarter revenue forecast that fell short of Wall Street expectations. The e-commerce giant cited weakening consumer demand for discretionary items like collectibles and refurbished goods as the primary cause.
High inflation and persistent interest rates, impacting consumer spending for the past two years, are blamed for the sluggish sales. eBay’s advertising revenue is also declining, further complicating profit growth despite increased marketing investments.
The company projects first-quarter adjusted earnings per share between $1.32 and $1.36, slightly above analyst consensus of $1.33. However, its revenue projection of $2.52 billion to $2.56 billion lags behind the anticipated $2.59 billion. Similarly, the anticipated gross merchandise volume (GMV) of $18.3 billion to $18.6 billion undershoots analyst estimates of $18.8 billion. This GMV figure represents the total value of goods sold on the eBay platform. The disappointing forecast signals continued challenges for the e-commerce sector amid persistent economic headwinds.
First Piper 