Historical Stock Chart
6 Months : From Aug 2019 to Feb 2020
By Dave Sebastian
EBay Inc. (EBAY) shares fell Thursday, a day after the online marketplace reported a lower profit and predicted its first quarterly revenue decline in four years.
EBay is working through a strategic review that prompted a leadership shake-up and could reshape its overall business. Shares of eBay dropped 8.4% to $35.91 Thursday morning.
For the third quarter, eBay posted $310 million, 57% lower than the same quarter last year. Adjusted earnings rose to 67 cents a share from 56 cents a share a year earlier.
Revenue remained flat at $2.65 billion but would have increased 2% excluding the impact of currency fluctuations.
The company lowered its forecast for the December quarter, which is typically bolstered by the holiday shopping season. EBay said it expects to earn a profit of $1.97 to $2.02 a share on $10.75 billion to $10.80 billion in revenue, compared with its previous guidance of $1.97 to $2.07 a share in profit on $10.75 billion to $10.83 billion in revenue.
Analysts lowered the company's price targets Thursday, with some citing the U.S. internet sales tax weighing on results and softer demand in concerts and theater within its StubHub ticketing business, which Elliott Management Corp. and Starboard Value LP are pressuring to get rid of. Analysts also called for the growth of gross merchandise value, which was down 4% for the quarter.
JPMorgan cut eBay's price target to $40 from $42. Wedbush slashed it to $36 from $38, while Bank of America trimmed it to $42 from $45.
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(END) Dow Jones Newswires
October 24, 2019 10:47 ET (14:47 GMT)
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