We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
eBay Slumps on Subdued Profit Outlook: ETFs in Focus
Read MoreHide Full Article
The e-commerce platform eBay Inc. (EBAY - Free Report) reported second-quarter 2023 non-GAAP earnings of $1.03 per share, which beat the Zacks Consensus Estimate by 4%. The bottom line increased by 5% year over year. Net revenues of $2.54 billion surpassed the Zacks Consensus Estimate of $2.51 billion. The figure increased by 5% from the year-ago quarter’s figure on a reported basis and 6% on an FX-neutral basis.
However, eBay forecast third-quarter profit below market expectations on Thursday as the company shelled out more to bolster categories such as auto parts, refurbished goods and collectibles. Non-GAAP earnings per share for Q3 are anticipated to be between 96 cents and $1.01. The Zacks Consensus Estimate for the same was pinned at $1.03 per share. As a result, shares slumped 10.5% on Jul 27.
For third-quarter 2023, eBay expects revenues of $2.46-$2.52 billion. On an FX-neutral basis, the year-over-year growth in revenues is anticipated to be 2%-4%. On a spot rate basis, the same is expected between 3% and 6%. The Zacks Consensus Estimate for revenues was pegged at $2.48 billion.
Inside the Quarterly Results
eBay’s Promoted Listings generated revenues of $341 million, up 47% on a reported basis and 49% on an FX-neutral basis from the prior-year quarter’s respective levels. Total advertising offerings yielded $367 million in revenues, which grew 33.5% on a year-over-year basis.
Softness in eBay’s Marketplace platform and weakening momentum among active buyers were concerns. EBAY witnessed a year-over-year decline of 4% in its active buyer base, which stood at 132 million at the end of the second quarter. The figure came below the consensus mark of 133 million.
The active buyer count stood at 131 million, excluding contributions from GittiGidiyor and TCGplayer acquisitions. eBay witnessed a declining gross merchandise volume (GMV) in the reported quarter, which remained an overhang. Nevertheless, eBay’s deepening focus on infusing AI technology into its platform to deliver an enhanced customer experience is expected to drive customer momentum in the near term.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that have exposure to eBay and may see tapered price performances due to pressure on eBay shares.
ProShares Online Retail ETF (ONLN - Free Report) – eBay has about 6.96% share
Global X E-commerce ETF (EBIZ - Free Report) – eBay has about 3.86% share
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
eBay Slumps on Subdued Profit Outlook: ETFs in Focus
The e-commerce platform eBay Inc. (EBAY - Free Report) reported second-quarter 2023 non-GAAP earnings of $1.03 per share, which beat the Zacks Consensus Estimate by 4%. The bottom line increased by 5% year over year. Net revenues of $2.54 billion surpassed the Zacks Consensus Estimate of $2.51 billion. The figure increased by 5% from the year-ago quarter’s figure on a reported basis and 6% on an FX-neutral basis.
However, eBay forecast third-quarter profit below market expectations on Thursday as the company shelled out more to bolster categories such as auto parts, refurbished goods and collectibles. Non-GAAP earnings per share for Q3 are anticipated to be between 96 cents and $1.01. The Zacks Consensus Estimate for the same was pinned at $1.03 per share. As a result, shares slumped 10.5% on Jul 27.
For third-quarter 2023, eBay expects revenues of $2.46-$2.52 billion. On an FX-neutral basis, the year-over-year growth in revenues is anticipated to be 2%-4%. On a spot rate basis, the same is expected between 3% and 6%. The Zacks Consensus Estimate for revenues was pegged at $2.48 billion.
Inside the Quarterly Results
eBay’s Promoted Listings generated revenues of $341 million, up 47% on a reported basis and 49% on an FX-neutral basis from the prior-year quarter’s respective levels. Total advertising offerings yielded $367 million in revenues, which grew 33.5% on a year-over-year basis.
Softness in eBay’s Marketplace platform and weakening momentum among active buyers were concerns. EBAY witnessed a year-over-year decline of 4% in its active buyer base, which stood at 132 million at the end of the second quarter. The figure came below the consensus mark of 133 million.
The active buyer count stood at 131 million, excluding contributions from GittiGidiyor and TCGplayer acquisitions. eBay witnessed a declining gross merchandise volume (GMV) in the reported quarter, which remained an overhang. Nevertheless, eBay’s deepening focus on infusing AI technology into its platform to deliver an enhanced customer experience is expected to drive customer momentum in the near term.
ETFs in Focus
Against this backdrop, below we highlight a few ETFs that have exposure to eBay and may see tapered price performances due to pressure on eBay shares.
ProShares Online Retail ETF (ONLN - Free Report) – eBay has about 6.96% share
Global X E-commerce ETF (EBIZ - Free Report) – eBay has about 3.86% share