EBay Inc. worried investors with a holiday sales outlook that suggests shoppers are abandoning the online marketplace and resuming pre-pandemic spending habits. Shares fell as much as 7.7% in extended trading.
Sales will be $2.57 billion to $2.62 billion in the period ending in December, the San Jose, California-based company said Wednesday in a statement. Analysts, on average, estimated $2.65 billion, according to data compiled by Bloomberg. Earnings, excluding some items, will be 97 cents to $1.01 a share, in line with estimates of 99 cents.
The pandemic gave eBay a boost in 2020 as shuttered stores encouraged more shopping online, but the momentum is fading as people resume traditional spending patterns such as traveling and dining out. Inventory shortages tied to a global shipping crunch further cloud the holiday outlook. CEO Jamie Iannone, who took over last year, says eBay’s advertising and payments businesses can boost profits even if total spending on the site falls from pandemic highs. He faces intense competition from online retail giant Amazon.com Inc. as well as Canadian newcomer Shopify Inc.
The shares fell to a low of $71.65 in extended trading after closing at $77.66 in New York. The stock has gained 55% this year.