Shares of eBay slumped more than 10% on Thursday after the company reported an earnings outlook for the current quarter that fell short of Wall Street’s estimates.
EBay said Wednesday afternoon that it expects 91 cents to 96 cents in adjusted earnings per share and revenue of $2.98 billion to $3.03 billion in the second quarter. Analysts polled by Refinitiv had expected 98 cents per share and $2.98 billion in revenue.
Several investors were spooked by the lighter-than-expected outlook and either downgraded the stock or lowered their price targets. Online marketplaces such as eBay, Amazon, Etsy and Wayfair all face growing pressure to prove that the pandemic-fueled boost to their businesses can last as the vaccine rollout accelerates and the economy reopens.