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EBay forecasts Q2 revenue below estimates as consumer spending remains strained
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EBay forecasts Q2 revenue below estimates as consumer spending remains strained
May 1, 2024 2:13 PM

May 1 (Reuters) - Ecommerce firm eBay ( EBAY ) forecast

second-quarter revenue below Wall Street estimates on Wednesday,

as demand cools for its key product categories like collector's

items and auto parts, sending shares down 5% in extended

trading.

The San Jose, California-based company has been under

pressure as inflation-hit shoppers are becoming increasingly

choosy about their online purchases, as well as competition from

larger platforms like Amazon.com ( AMZN ).

It expects revenue in the range of $2.49 billion to $2.54

billion for the quarter ending June. Analysts on average were

expecting $2.56 billion, according to LSEG data.

The company forecast adjusted per share earnings of

$1.10 to $1.15, the mid-point of which came in below analysts

estimate of $1.14.

With bigger e-commerce platforms gaining the lion's

share of the market, eBay ( EBAY ) re-oriented itself in the recent years

and scaled offerings in the so called "focus categories" such as

luxury bags and watches, refurbished electronics and auto parts

and accessories.

In 2022, eBay ( EBAY ) bought trading cards marketplace TCGplayer

for $295 million to scale the collectible cards category. It

also started services to authenticate luxury and collectible

items.

Revenue in the most recent quarter ended March 31 rose 2% to

$2.56 billion, slightly above analysts' estimate of $2.53

billion. Adjusted per share earnings of $1.25 came in higher

than analyst estimates of $1.20.

Gross merchandise volume, a key industry gauge that

denotes the total value of goods and services sold on the

marketplace, rose 1% to $18.62 billion.

Active buyers remained steady at 132 million as of

March-end. The company defines active buyers as customers who

paid for a transaction on eBay ( EBAY ) within the previous 12-month

period.

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