Ebay’s shares have divebombed nearly seven per cent amid signs that vaccinated shoppers could shun the platform for the high street over the coming quarter.
Ebay released its financial figures for the first quarter ended March 31 yesterday, hailing “tremendous volume and earnings, with revenue growth the highest it has been since 2005”.
Despite beating analyst estimates and its own guidance over the quarter, seeing revenues jump 42 per cent to $3 billion, investors saw its outlook for the current quarter as a major red flag.
For the current quarter, Ebay projected revenue growth of between eight and 10 per cent and non-GAAP profits of between 91-96 cents per share, missing analysts’ estimates of $1.02 cents per share by some margin.
This suggests that unlike its tech rivals Facebook, Google and Shopify, who all expected to see their pandemic-driven revenue boost continue over the next few months, Ebay’s sales boost could be coming to an end as stimulus checks run dry and shoppers begin returning to the high street.
Over the previous quarter, Ebay also reported gross merchandise value (GMV) growth of 29 per cent to $27.5 billion, while adjusted profits came in at $1.09 per share.
It also finished the quarter with 187 million active buyers, rising seven per cent, while annual active sellers grew eight per cent to 20 million.
“We generated tremendous volume and earnings, with revenue growth the highest it has been since 2005,” Ebay’s chief executive Jamie Iannone said.
“Last July, I laid out our vision for a Tech-led reimagination of Ebay and our results prove this long-term strategy is working. While we have more work to do, we are confident we are on a path of continued growth in the years ahead.”