Declining Profits and Mixed Results

On October 30, 2024, eBay announced disappointing financial results for the third quarter after the market closed. Investors were particularly alarmed by a significant decline in profit, which more than halved compared to the previous year. Meanwhile, revenue saw only a modest increase.

Overall, eBay’s revenue increased by three percent year-over-year to reach $2.576 billion. However, the company’s profit plummeted from $1.3 billion last year to just $636 million, translating to earnings of $1.29 per share.

User Engagement and Transaction Volumes

The figures surrounding user engagement were also mixed. eBay did see a one percent increase in the number of active users, which now totals 133 million, marking the first rise in five quarters. However, the total transaction volume fell by approximately two percent, indicating that while more users are shopping on the platform, they are spending less with sellers and auction providers compared to the same period last year.

Sobering Forecast for the Coming Quarter

Looking ahead, the outlook for eBay's next quarter does not inspire much confidence among investors. The management forecasts only stable revenues or minimal growth, a notably disappointing expectation given that the holiday season has historically boosted sales figures. Additionally, earnings are predicted to drop by about 25% in the fourth quarter, raising further concerns among stakeholders.

Reaction in the stock market was immediate, with eBay's shares falling nearly seven percent in early trading after the announcement, marking a decline from the previous day's close.

For further details, you can read the full article here from Heise Online.