eBay’s AI Push Can’t Stop Stock Slide as Holiday Forecast Falls Short

The OG of online marketplaces just dropped its Q3 numbers, and while they beat expectations, their holiday outlook has investors hitting the ‘sell’ button. Here’s the breakdown:

• Revenue: $2.58B (beating the $2.55B target)
• Earnings: $1.19 per share (edging past $1.18 expected)
• GMV: $18.3B (surprising analysts with 2% growth)

Despite rolling out AI-powered shopping tools and focusing on premium categories like collectible sneakers and luxury goods, eBay’s projecting a potentially flat Q4 (between -1% to +1% growth). This cautious outlook sent shares tumbling 9% after hours.

 CEO Jamie Iannone points to some interesting headwinds:

• A shorter holiday shopping season (5 fewer days)
• Hurricane disruptions
• Election year distractions

The Bigger Picture: eBay’s fighting a multi-front battle against Amazon and Walmart, plus new challengers like Temu and Shein. Their counter-strategy? Doubling down on used goods and refurbished items – a smart play in today’s budget-conscious market.

While management’s ‘feeling good’ about their trajectory, Wall Street’s clearly waiting for more convincing signs that eBay can hold its ground in the increasingly crowded e-commerce battlefield.