Ebay Forecasts Stormy Waters As Online Retail Boom Fades
The days of online shopping being a tier one lockdown hobby may just be coming to an end, as eBay gives a troubling revenue forecast for the current quarter, with the gloomy outlook forcing shares down 2 per cent in extended trading.
Revenue will sit between $USD2.42 billion and $2.47 billion during the September quarter according to eBay, falling short of Wall street estimates that have the company bringing in $USD2.49 billion.
Amazon made similar forecasts a fortnight ago, which also saw eBay shares fall in the wake of that.
CEO Jamie Iannone says the company is expecting a period of inconsistency as the pandemic shifts into different phases.
“Things will change over the course of the year as consumers react to the different variants, but what we’re really focused on is the long-term health of the business,” Iannone said.
“The investments that we’re making in the tech-led re-imagination, the investments in our eBay stores products, in our mobile products, in search, in payments and advertising — they’re all seeing the intended impact.”
During the June quarter, eBay outpaced analysts estimations of $USD2.63 billion, with sales leaping 14 per cent to $USD2.67 billion.