eBay Inc’s holiday revenue projections fell short of analysts’ expectations, sending its shares down 6.5% in after-hours trading on Wednesday. The e-commerce company said it expects fourth-quarter revenue of between $2.43 billion and $2.48 billion, below the average analyst estimate of $2.52 billion, according to Refinitiv. eBay’s holiday season, which spans from November 1 through December 31, is typically its strongest quarter. However, the company has faced a number of challenges in recent months, including rising inflation, supply chain disruptions, and a shift in consumer spending toward experiences rather than goods. As a result, eBay has been working to diversify its business by expanding into new areas such as sneakers and collectibles. The company has also been investing in its advertising platform and improving its customer experience. Despite these efforts, eBay’s holiday revenue growth is expected to slow significantly from the 11% it reported in the same period last year. This slowdown is likely due to a number of factors, including the aforementioned challenges as well as the fact that consumer spending is expected to be more muted this holiday season. In addition to its revenue forecast, eBay also announced that it expects to post adjusted earnings per share of between $1.05 and $1.08 in the fourth quarter. This range is below the average analyst estimate of $1.11 per share. The company’s guidance for the full year 2023 is also below analysts’ expectations. eBay said it expects revenue to grow between 2% and 4% in 2023, below the average analyst estimate of 5%. The company attributed this slowdown to a number of factors, including macroeconomic headwinds and the uncertain global economic environment. Despite the disappointing projections, eBay CEO Jamie Iannone said that the company is optimistic about its future prospects. .
eBay Sees Holiday Sales Lagging Behind Projections
