EBay shares sink after posting financial results

EBay shares were down about 4% in initial after hours trading, after posting second quarter financial results.

But in terms of revenue and net income, the company’s results were in line with expectations. According to Yahoo! Finance, analysts were forecasting an adjusted 45 cents per share and revenue of $2.31 billion, which is the same as the 45 cents per share and the $2.3 billion in revenue that the company posted.

“During the past two years, we have made significant progress to modernize eBay and drive growth by improving the customer experience, creating a product catalog that covers more than half of our inventory, and sharpening the eBay brand,” said CEO Devin Wenig, in a statement. “We are on track and focused on creating an even stronger eBay for years to come.”

EBay also revealed gross merchandise volume of $21.5 billion, a measurement of total transactions processed on their platform. This was up just 3% compared to last year.

The company announced that an additional $3 billion was authorized for the share repurchase program. They’ll additionally be repurchasing $507 million in common stock.

It is a competitive landscape for e-commerce, so eBay recently announced that they will be matching Amazon and Walmart prices on over 50,000 items. This was revealed late in the quarter, so it’s unclear yet what kind of impact this will have on earnings.

It’s now been two years since eBay split from PayPal. EBay is currently the smaller of the two companies, with a market cap of $40 billion, versus PayPal’s $70 billion.

eBay shares are up 41% in the past year and closed Thursday at $37.18.

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