eBay Shares Drop as Q4 Revenue and Profit Forecasts Fall Short of Wall Street Estimates

Analysts downgrade eBay stock following Q3 results; company's Q4 projections undercut by weak consumer spending, increasing inflation and heightened competition.

• Despite upbeat Q3 earnings, eBay's shares fell by 3.8% due to a lower-than-expected Q4 forecast, and several analysts have subsequently lowered their price targets on the stock.
• eBay's Q3 revenue rose 5% YoY to $2.50 billion, narrowly missing the consensus, and its first-party advertising products posted revenue of $345 million in Q3, led by Promoted Listings.
• eBay's Q4 projections of earnings between $1.00 to $1.05 per share on revenue of $2.47 billion to $2.53 billion fell short of Wall Street estimates, contributing to the downturn in share prices.
• eBay cited weak consumer spending due to high interest rates, stubborn inflation, and increasing competition from e-commerce platforms like Amazon as reasons for its disappointing Q4 forecast.
• Despite challenges, eBay declared a Q3 dividend per share of $0.25 and repurchased $651 million of its common stock, with about $1.7 billion repurchase authorization remaining as of end of Q3 2023.

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