Sales Forecast Fall For EBay Inc (NASDAQ:EBAY)
EBay Inc (NASDAQ:EBAY) issued its profit and sales forecast that fell below analysts’ projections even as the holiday season approaches. The company has sighted a deceleration in ecommerce growth in the United States. In a statement, the company said that its Q4 sales will be $4.5-$4.6B. On an average, analysts had projected revenue of $4.64M. The company has forecast profit of 79-81 cents with the exclusion of some items which was below the analysts’ estimates of 83 cents.
This quarter is typically the company’s biggest quarter and these projections are definitely raising eyebrows and flags about the company’s performance. The holiday season is when customers veer to online sites for their holiday shopping. However, there has been a distinct slowdown of online retail growth in the U.S. There was a rise of 13% in the online retail segment in comparison to the 16% growth that was experienced in the Q2.
Bob Swan, the company’s Chief Financial Officer said that the one point that is causing the most trouble is the slowdown in the ecommerce in the U.S, from the Q2. In a very short period of time, there was been a significant amount of wind-down.
In Wednesday’s trading, eBay Inc (NASDAQ:EBAY) dropped by 0.83%. The opening price of the shares was $54.44, which was also the intraday high and dipped to a close of $53.52. Approximately 19.32 million shares were traded on Wednesday while an average volume of 8.21 million shares were traded over a 30 day period. The 52-week low of eBay Inc (NASDAQ:EBAY) shares is $45.66 and its 52-week high is $58.04. The company has a market capitalization of $69.28 billion
About the company
eBay Inc (NASDAQ:EBAY) is a global-technology company. It enables commerce via 3 business segments- Marketplaces; the Payments section and the GSI segment.