Ebay has projected holiday-quarter revenue below expectations, indicating that the pandemic-fuelled ecommerce boom may finally be coming to an end.
The marketplace platform was one of 2020’s biggest corporate winners as the pandemic forced shoppers online.
However it has since since a slowdown in its growth since then as a result of bricks-and-mortar retail opening back up.
Ebay said it expected fourth-quarter revenue between $2.57 billion and $2.62 billion, well below analysts’ average estimate of $2.65 billion, according to data from Refinitiv IBES.
The ecommerce platform has also reported a five per cent decline in the number of active buyers in Q3 as well as seeing its gross merchandise volume (GMV) fall by 10 per cent.
Despite both of these figures falling, the company did see a strong showing from its payment services and its ad portfolio, the latter seeing an 11 per cent increase that was better than expectations.
For the current quarter, it expects adjusted profit between 97 cents and $1.01 per share, with analysts expecting $1 per share.