eBay Profit Forecast Slumps Ahead Of Amazon Launch, Shares Fall
Renowned e-commerce platform, eBay Inc, has disclosed its latest current-quarter adjusted profit forecast, which came notably below analysts’ expectations.
eBay is currently expending heavy investment to revamp its e-commerce platform, in a bid to steer competition away from rival Amazon, and attract new customers.
The adjusted profit forecast also comes just ahead of Amazon Australia’s upcoming launch.
eBay disclosed a fourth-quarter adjusted profit forecast of between US$0.57 to US$0.59 per share. According to Thomas Reuters, analysts were expecting a profit of 59 cents per share.
The company announced 168 million active buyers in the third quarter, which also fell below analysts’ forecasts of 171 million.
Following the news, eBay’s shares fell 4.4% to US$36.30 in after-hours trading on Wednesday (in the US).
Net income jumped to US$523 million (i.e. 48 cents per share), in the third quarter ending September 30th, which is up from US$413 million (i.e. 36 cents per share), the year prior.
Interestingly, eBay’s revenue rose 8.7% to US$2.41 billion, beating analysts’ forecasts of US$2.37 billion.