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eBay Slumps on Subdued Profit Outlook: ETFs in Focus
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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
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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