eBay Predicts Revenue Below Estimates As Shoppers Go Out

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eBay Inc predicted Wednesday that current-quarter sales would be below analysts’ forecasts as more countries reopen their economies and vaccination rates increasing could signal an end to the pandemic-induced shopping boom.

eBay expects third-quarter revenue between $2.42 billion and $2.47 billion, while analysts had expected $2.92 billion, according to IBES data from Refinitiv.

Shares in the online trading giant fell 1% in after-hours trading.

eBay chief executive Jamie Iannone said people who became more mobile in the spring had influenced sales, but the company’s strategy in areas such as collectibles, ads and payments was working.

He said that despite eBay’s agreement to sell 80% of its Korean business to Shinsegae Group’s E-Mart Inc, the company has met or exceeded forecasts.

Last month, Amazon’s second-quarter sales missed analysts’ estimates, and the online retail giant hinted at slower sales growth in e-commerce.

eBay said its second-quarter revenue rose about 14% to $2.68 billion, its slowest growth in the past four quarters. Analysts were forecasting revenue of $3 billion.

Online retail giant gross merchandise volume (GMV), the value of goods sold on its websites within a given time frame, fell 7% to $22.1 billion.

Chief Financial Officer Stephen Priest said in a post-profit call that the company forecast a further decline in active buyers on a rolling 12-month basis in the coming quarters, but an increase in GMV per buyer.

On an adjusted basis, the company earned 99 cents per share, above analyst forecasts of 95 cents. eBay also expanded its share buyback program by $3 billion.

For more information, read the original story in Reuters.

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