Ebay shares jump 9% as its blitzes estimates and posts runaway 2020 sales

Ebay saw revenues rise nearly 30 per cent during its final quarter as the equivalent of one in four Brits shopped on the platform over the Christmas season.

Ebay’s shares jumped nearly 10 per cent in after hours trading after it reported a 28 per cent rise in revenues to $2.89 billion in the three months to December 31.

This came comfortably above analyst expectations of $2.7 billion, while profits also beat average estimates of 82 cents per share coming in at 86 cents per a share.

Gross merchandise volumes, the total value of items sold on the platform during its final quarter, rose 21 per cent to 26.6 billion, though this was a slower pace of growth than the 26 per cent rise seen in the previous quarter.

READ MORE: Ebay set to sell off its Korean business

The number of annual active buyers also grew seven per cent to 185 million, as Ebay continued to benefit from the growing exodus online during the pandemic.

“Our buyers were very active during the holiday season,” Ebay’s chief executive Jamie Iannone said.

“In the United States, one in 10 online shoppers bought something on eBay. In Germany, that number was one in seven and in the UK, it was one in four.”

This meant that full year revenues jumped 19 per cent to $10.3 billion, seeing earnings per share rise 49 per cent to $3.41.

Outlook for the coming quarter was also strong, with Ebay expecting to blitz analyst predictions and achieve revenues of between $2.94 billion and $2.99 billion.

Earnings per share are also expected to come in at between $1.03 and $1.08 per share, well above estimates of 85 cents per share.

“We’ll be stronger coming out of the pandemic than we were going in,” Iannone told Reuters.

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