Ebay Shares Turn Lower as Economies Normalize
30 April 2021 - 3:19AM
Dow Jones News
By Micah Maidenberg
Ebay Inc. shares fell Thursday as the company said revenue
growth was poised to slow in the second quarter as many economies
return to more normal conditions and because it forecast a
weaker-than-expected profit for the April-through-June stretch.
Shares of the company traded down 11.3% near midday.
Ebay gained ground last year as consumers around the world spent
more time at home and shifted to ecommerce as many retailers
temporarily closed stores in an effort to limit the spread of the
coronavirus. Revenue jumped 20% on a comparable basis for the year,
and merchandise volumes, which measure the value of deals between
buyers and sellers on its platforms, totaled $100 billion.
That momentum continued in the first quarter, with revenue
increasing 38% on a comparable basis to $3 billion, helped along by
strong demand in the U.S. for products like sneakers, luxury
watches and trading cards, the company said Wednesday.
Now, however, Ebay faces the challenge of continuing to expand
after several quarters of robust gains. For the second quarter,
Ebay said Wednesday that it believes it will generate $2.98 billion
to $3.03 billion in revenue, up 8% to 10% on a comparable basis.
The forecast reflects in part weaker volumes in its marketplace,
executives said on an investor call.
The biggest difference between the first quarter and the second
quarter "would be the fact that the mobility is in a better place
today than it was at the beginning of the first quarter," Ebay
interim finance chief Andrew Cring said on an investor call
Wednesday.
Ebay also said Wednesday that it believes it will earn a profit
of 91 to 96 cents a share after adjustments in the second quarter,
less than the $1 per share that analysts expected for that earnings
measurement, according to Stifel.
Write to Micah Maidenberg at micah.maidenberg@wsj.com
(END) Dow Jones Newswires
April 29, 2021 13:04 ET (17:04 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
eBay (NASDAQ:EBAY)
Historical Stock Chart
From Apr 2024 to May 2024
eBay (NASDAQ:EBAY)
Historical Stock Chart
From May 2023 to May 2024