Shares of e-commerce company eBay soared 7 percent in extended trading on Wednesday, following a slump of about 40 percent so far this year, after the company reported third-quarter earnings results that surpassed Wall Street’s expectations. The company said that its third-quarter revenue was boosted as a result of people buying luxury souvenirs and quirky gifts on its e-commerce platform.
The company has increased the categories on its eponymous platform and now offers customers pre-owned sneakers and jewelry. The company is also looking to tap into the increasing demand for high-value collectibles such as electronics.
The company’s forecast for revenue for the ongoing holiday quarter was below analysts’ estimates.
For the third quarter, the company said revenue fell 5% to $2.4 billion, surpassing estimates of $2.32 billion.
Industry giant Amazon also forecast a gloomy holiday quarter as a result of the surge in food prices, gas and other essentials, etc., experienced this year. Customers have been forced to be strategic with their spending and slow down on casual shopping. Amazon had a gloomy third quarter. The company reported earnings of 28 cents per share for the third quarter. The company also reported third-quarter revenue of $127.10 billion, below the expectation of $127.46, according to Refinitiv. Amazon Web Services generated $20.5 billion, less than the expectation of $21.1 billion, according to StreetAccount. The company also generated $9.55 billion from advertising, surpassing the expectation of $9.48 billion from StreetAccount. Amazon said it expects fourth-quarter revenue to come in between $140 billion and $148 billion. This will represent year-over-year growth of between 2 percent and 8 percent. Analysts expect fourth-quarter revenue of $155.15 billion, according to Refinitiv.
eBay said that it expects revenue to come in between 42.42 billion and 42.50 billion in the fourth quarter. The midpoint of this range falls below analysts’ estimate of $2.49 billion, according to Refinitiv data. The company also expects adjusted earnings to come in between $1.03 and $1.09 per share in the fourth quarter. Analysts, on the other hand, expect earnings per share of $1.06.
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Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
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