EBay is trying to meet the growing demand for used and refurbished items from buyers eager to save money.
(Bloomberg)– EBay Inc. gave a fourth-quarter profit forecast that missed analysts’ average estimate, stoking investor concerns about shrinking margins ahead of the holiday shopping season.
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Earnings, excluding some items, will be $1.31 to $1.36 per share in the period ending in December, the company said Wednesday in a statement. Revenue will be between $2.83 billion and $2.89 billion. Analysts, on average, estimated sales of $2.8 billion and earnings per share of $1.39, according to data compiled by Bloomberg.
eBay shares fell about 7% in extended trading after closing at $99.54. eBay shares are up 61% so far this year, more than triple the gains of the S&P 500 index.
Investors are looking for clues about consumer mood ahead of the gift-giving season. EBay is trying to meet the growing demand for used and refurbished items from buyers eager to save money. In September it acquired Tise, a Nordic marketplace for used clothing and home goods.
U.S. online spending in November and December is expected to rise 5.3% from a year earlier to $253.4 billion, according to Adobe Inc., which tracks traffic to retail websites and sales of more than 100 million products.
However, overall holiday spending is expected to decline due to tariff-related price increases and a weakening labor market, according to a survey published in September by PricewaterhouseCoopers.
Third-quarter profit, excluding some items, was $1.36 per share. Revenue rose 9% to $2.82 billion. Analysts, on average, estimated $1.34 per share on sales of $2.73 billion.
Gross merchandise volume, the value of all goods sold on eBay, rose 10% to $20.1 billion during the third quarter, beating the average estimate of $19.4 billion. The company said it had 134 million active buyers as of Sept. 30, just above the average estimate of 135 million.
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