EBay Tries to Catch Up With Rivals, Misses Second-Quarter Forecasts

eBay Tries to Catch Up With Rivals, Misses Second-Quarter ForecastseBay’s forecast for current-quarter Gain and Earnings missed Wall Street estimates as the e-commerce company invests heavily to Conquer the Increasing competition from the likes of Amazon.com and Alibaba Group Holding.

EBay’s total operating expenses rose 16.1 percent to $1.44 billion (roughly Rs. 9,600 crores) in the first quarter. The company’s shares were down 4.5 percent at $39.11 (approximately Rs. 2,600) in trading.

The business has been trying to woo shoppers by refurbishing the homepage of its own website and making it simple for searches as well as by ensuring that the authenticity of superior products that it sells.

“We’re actively investing to construct our product and capabilities related to intermediated payments and improving the client experience,” CFO Scott Schenkel stated on a post-earnings call. “We anticipate the level of investment to increase over time”

EBay said it expects net revenue for the second quarter to be between $2.64 billion and $2.68 billion. Participants were expecting it to become $2.69 billion.

The company prediction second-quarter earnings per share in the range of 50 cents to 52 cents per share. The midpoint of this range came in below the average analyst estimate of 52 cents.

In the reporting quarter, 171 million active buyers utilized the organization’s website, missing the average analyst estimate of 173.4 million purchasers, according to analytics and data firm Factset.

However, its gross merchandise volume – that the entire value of all goods sold on its websites – rose 13 percent to $23.6 billion (roughly Rs. 1.58 lakh crores), brushing past the analyst goal of $23.1 billion, based on FactSet.

The organization’s net income dropped to $407 million (approximately Rs. 2,700 crores), or 40 cents per share, in the quarter ended March 31, from $1.04 billion, or 94 cents per share, a year earlier if it booked a $695 million tax profit.

Revenue climbed to $2.58 billion (approximately Rs. 17,200 crores) from $2.30 billion.

Excluding one-time things, the San Jose, California-based firm earned 53 cents per share, in line with analysts’ estimates of 53.