Profit slump at eBay: Results and outlook disappoint investors
Profits halved compared to the same quarter of 2023, and the share price fell on the stock market. There is no improvement in sight for the next quarter either.
(Image: Shutterstock/Anton Gvozdikov)
The trading platform eBay presented mixed figures for the third quarter of 2024 last Wednesday, October 30, after the close of trading. In particular, profits more than halved compared to 2023, while revenue increased only slightly.
Compared to the third quarter of 2023, the Group's revenue rose by three percent to USD 2.576 billion, while profit fell from USD 1.3 billion to USD 636 million or USD 1.29 per share.
The results presentation also painted a mixed picture in terms of user numbers and transactions: although the number of active users rose for the first time in five quarters by one percent to 133 million, the total transaction volume fell by around two percent. This means that although slightly more users are shopping on eBay, they are spending slightly less money with retailers and auction providers than in the same period last year.
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A sober look into the crystal ball
The outlook for the next quarter does not give investors much cause for joy either, as eBay management is predicting stable sales or mini-growth at best. This is disappointing insofar as the Christmas quarter has always ensured sales growth in previous years. The Group's managers are also warning that profits will fall by a quarter again in the fourth quarter.
Considering these prospects, the stock market initially went downhill – in the early afternoon of Halloween, the share was trading around 7 percent below the previous day's closing price.
(cku)
