EBay shares take a hit as outlook fails to inspire investors – Silicon Valley – California News

EBay shares take a hit as outlook fails to inspire investors – Silicon Valley – California News

SAN JOSE — Investors didn’t buy what eBay was selling Thursday after the e-commerce leader gave a weaker-than-expected earnings and sales outlook that took some of the shine off of the company’s upbeat first-quarter results.

EBay shares fell by almost 4 percent, to close at $32.53 after the company said late Wednesday that for its second quarter, it expects to earn between 43 cents and 45 cents a share, excluding one-time items, on revenue in a range of $2.28 billion to $2.32 billion. Wall Street analysts had forecast eBay to earn 48 cents a share on $2.32 billion in sales for the quarter that ends in June.

The outlook added to some concerns about eBay facing tougher competition from the likes of traditional rival Amazon, but also Facebook and Google parent company Alphabet.

Piper Jaffray analyst Michael Olson said “a fairly sizable gap remains” between eBay and Amazon, and also what he called “other e-commerce platforms.”

“EBay’s position within the internet is solid,” Olson said. “(But) we would like to see continued efforts to improve (eBay’s) user experience to match the quality of other e-commerce platforms.”

EBay has been in a bit of a turnaround mode for more than a year since the company spun off its PayPal electronics-payments business as a separate company. Since then, eBay has put much of its efforts into improving the layout of its site and attract more shoppers.

The moves have shown signs of paying off. During the first three months of this year, eBay added 2 million new buyers to give it 169 million active buyers during the quarter. The value of goods purchased through eBay’s…

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