Despite Upbeat Q3 Results, eBay Shares Plummet

Driven by growth in net revenues, e-commerce corporation eBay Inc. (EBAY) exceeded expectations in the third quarter.

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However, the company’s shares declined 5.3% to close at $73.51 during Wednesday’s extended trading session, despite posting upbeat results.

eBay reported quarterly net revenues of $2.5 billion, reflecting 11% growth year-over-year. A significant contributor to this growth was the revenues generated from Promoted Listings, which saw a 12% gain from the previous year to $207 million. Moreover, the figure surpassed the consensus estimate of $2.46 billion.

The company’s quarterly earnings per share (EPS) of $0.90 indicates a year-over-year growth of 9%, higher than the consensus estimate of $0.89.

The e-commerce company’s annual active buyers declined 5% to 154 million compared to the year before, while the number of annual active sellers remained flat year-over-year at 19 million.

Notably, the company also provided guidance for the fourth quarter of 2021. The company forecasts revenue to be in the range of $2.57 billion to $2.62 billion. For the same period, the company expects EPS to be between $0.97-$1.01, against the consensus estimate of $1.

eBay CEO, Jamie Iannone, said “Our team delivered another strong quarter, once again meeting or surpassing our expectations for all key business metrics, making further progress on our multi-year strategy. Our Q3 results, driven by the near completion of our managed payments migration, expansion of our advertising portfolio, and volume growth in our focus categories, demonstrate that our strategic playbook continues to work.”

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The Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 6 Buys and 9 Holds. The average eBay price target of $76.60 implies the stock has downside potential of 1.4% from current levels.

TipRanks’ Website Traffic Tool, which uses data from Semrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into eBay’s performance this quarter.

According to the eBay website traffic, the eBay website recorded a 16.05% monthly decline in global visits in September. However, year-to-date, website traffic surged 4.56%.