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:
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.
Paul Balo is the founder of TechBooky and a highly skilled wireless communications professional with a strong background in cloud computing, offering extensive experience in designing, implementing, and managing wireless communication systems.
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