eBay Short Fall, PayPal Exceed Expectation
eBay has reportedly fallen short of estimations following the release of its revenue forecast for its fourth-quarter sales, while former subsidiary PayPal has exceeded analysts expectations in its Q4 earnings.
As reported by Bloomberg, eBay’s shortfall comes just before the busy holiday shopping season, with the possibility of a management shakeup now on the table, performance is due to be threatened come Christmas time.
The online marketplace projected sales of $2.77 – $2.82 billion, falling short of estimates of $2.85 billion, with eBay’s report attributing the departure of CEO Devin Wening to the clouding of the fourth quarter.
Gross merchandise volume was down 4.4% from the year prior, posting the value of all goods sold on its platform at $21.7 billion.
Shares also declined roughly 3% after closing in New York at $39.20.
eBay gave an adjusted profit per share forecast of 73 cents to 76 cents, again short of estimates of 76 cents per share.
PayPal meanwhile has reportedly surged past analysts’ estimates, forecasting earnings per share of 81 cents to 83 cents, compared with estimates of 81 cents.
Despite a decline in revenue from eBay, PayPal posted revenue of $4.35 billion, exceeding estimates of $4.35 billion.
eBay announced it would shift payment processing away from PayPal in 2018, since then its share of PayPal’s businesses has declined, pushing the payment company to move towards other ventures.
Unfortunately, investments made in Uber and a Latin American e-commerce company MercadoLibre Inc. have not performed well despite promising a drive in revenue.
Venmo growth is also slowing down even as PayPal seeks to turn a profit with the payment application.
Transactions totalled $27 billion in Q3, growing by 64% from last year, with revenue reaching almost $400 million on an annualised basis, thanks in part to Venmo’s Uber app feature according to Dan Schulman, the chief executive officer.
PayPal’s total volume has now ballooned to $178.7 billion, higher than estimates of $177.5 billion.