- eBay’s (EBAY) stock dropped over 6.5% to $64.61, hitting a low of $61.55, after a Q1 revenue forecast of $2.52 – 2.56 billion fell below the $2.59 billion consensus and GMV guidance of $18.3 – 18.6 billion signaled flat to 1% growth.
- Q4 earnings of $1.25 per share beat the $1.20 consensus by $0.05, with revenue up 0.7% to $2.58 billion against $2.57 billion expected, and GMV reaching $19.3 billion, up 4% as-reported.
- Despite a 36% share value increase over the past year and 134 million active buyers, eBay’s modest 1% buyer growth and cautious Q1 EPS guidance of $1.32 – 1.36, in line with $1.33 consensus, reflect competitive pressures.
eBay Inc. (EBAY), a titan in the e-commerce space, saw its stock tumble more than 6.5% to $64.61 on Thursday, dipping to an intraday low of $61.55, as the market digested a lackluster revenue and gross merchandise volume (GMV) outlook for the current quarter. Despite a solid fourth-quarter performance ending December 2024 – with earnings of $1.25 per share beating the $1.20 consensus by $0.05 and revenue of $2.58 billion aligning closely with the $2.57 billion expected – the company’s forward guidance sparked concern. Revenue growth in Q4 crept up just 0.7% year-over-year, signaling a maturing platform facing intensifying competition, yet the $19.3 billion GMV hit the top of the prior $18.9 – 19.3 billion range, reflecting a 4% as-reported increase and 3% on an FX-neutral basis.
The company’s active buyer base edged up 1% to 134 million, a modest gain that underscores eBay’s challenge in expanding its reach amid a crowded online marketplace landscape. For Q1, eBay projected earnings per share of $1.32 – 1.36, in line with the $1.33 consensus, but its revenue forecast of $2.52 – 2.56 billion fell short of the $2.59 billion analysts anticipated. More troubling was the GMV guidance of $18.3 – 18.6 billion, suggesting flat to 1% FX-neutral growth—a slowdown from Q4’s pace that most probably contributed to today’s stock’s slide. This cautious outlook reflects broader economic uncertainties and shifting consumer behavior, areas where eBay must innovate to sustain momentum.
Even with today’s 6.5% decline, eBay’s shares have gained 36% over the past 12 months, a testament to its resilience and strategic adjustments in a dynamic sector. The $19.3 billion GMV and $2.58 billion in Q4 revenue highlight a stable foundation, but the projected dip to $2.52 – 2.56 billion in Q1 revenue suggests headwinds ahead. eBay’s ability to maintain its 133 million active buyers while navigating a projected $18.3 – 18.6 billion GMV will be critical as it seeks to balance profitability with growth in an increasingly competitive e-commerce environment.
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