Shares of eBay (NASDAQ:EBAY) slipped by almost six percent to trade at $36 per share after the e-commerce company posted a weak earnings outlook that were below most analyst estimates.
According to the company, it now expects its adjusted earnings to come at around 57 cents to 59 cents per share which misses a number of analyst estimates.
For the company’s third-quarter earnings report, the company recorded two million additional active buyers which totals their overall active buyers from all over the globe to 168 million buyers.
Shares of the company also slipped by 4% during their earnings call for the second quarter after it posted a weak forecast for its third-quarter earnings, which also missed most analyst estimates.
Just recently, eBay has announced a new program on its platform that would allow users to check if the products they are buying are authentic. The new authentication program will allow merchants who are offering high-end brands such as Chanel, Balenciaga, Gucci and many others to authenticate their products and assure buyers of the product’s originality.
This will allow the company to attract not just resellers of used items but also pre-owned luxury items such as branded bags and wallets which is one of the site’s most popular categories. The company has been increasing its efforts in expanding its platform over the past quarters in the midst of growing competition from Amazon.com Inc (NASDAQ:AMZN) and other ecommerce sites or companies which have transitioned to online selling.
Prior to the release of their third quarter earnings report, investors were mostly optimistic regarding the earnings of the company. For the third quarter, the company was able to record a net income of $523 million representing around 48 cents per share for the quarter that ended in September.
This is higher than their net income of $413 million or 36 cents per share from the same quarter last year.
eBay’s revenue was also up by 8.7% to $2.41 billion beating most analyst estimates of $2.37 billion while their earnings came at 48 cents per share in line with consensus analysts forecasts.
For the coming quarter, analysts are expecting eBay’s earnings to come at 60 cents per share on a revenue of $2.58 billion. eBay shares are currently up by 27.9% this year.