Shares of eBay (EBAY) fell nearly 7% Thursday, a day after the e-commerce marketplace issued a current-quarter revenue and gross merchandise volume (GMV) outlook weaker than analysts anticipated.
The San Jose, Calif.-based firm reported fourth-quarter adjusted earnings per share (EPS) of $1.25, ahead of the analyst consensus compiled by Visible Alpha and its own forecast range of $1.17 to $1.22. Revenue rose less than 1% to $2.58 billion, in line with analysts’ expectations and mostly above eBay’s outlook of $2.53 billion to $2.59 billion.
CFO Says ‘Challenged Macro Environment’ Continues
For the first quarter, eBay expects to generate revenue of $2.52 billion to $2.56 billion, below analysts’ projections of $2.60 billion. It also sees GMV of $18.3 billion to $18.6 billion, while analysts were looking for $18.86 billion.
“We are continuing to operate in quite a challenged macro environment, particularly in Europe,” eBay CFO Steve Priest said on the company’s earnings call, according to a transcript provided by AlphaSense. “And now, more recently, we’re facing the uncertainty around U.S. tariffs and de minimis changes.”
Even with Thursday’s declines, shares of eBay have added 45% of their value over the past 12 months.
UPDATE—This article has been updated with the latest share price information.