eBay Projects Holiday Profit That Falls Short of Expectation

eBay gave a lackluster profit forecast for the holiday quarter, blunting investor enthusiasm that the online marketplace was solidifying its position in an industry dominated by Amazon, according to Bloomberg.

While the company projected sales for the current period that slightly topped analysts’ estimates, shares declined as much as 7.9 percent in extended trading. Adjusted earnings in the current quarter will be 57 cents to 59 cents a share, eBay said in a  statement. Analysts projected 60 cents. Revenue will be $2.58 billion to $2.62 billion compared with analysts’ average estimate of $2.58 billion, according to data compiled by Bloomberg.

The company reported its platforms attracted 168 million global active buyers in the period ended Sept. 30, adjusted for the loss of domestic buyers in India after the sale of its business there to Flipkart. Gross merchandise volume, the value of all goods sold, increased 8 percent to $21.7 billion. eBay’s revenue grew 8.7 percent to $2.41 billion in the third quarter, but operating expenses increased almost as quickly, 8.3 percent, to $1.28 billion.

CEO Devin Wenig is trying to speed eBay’s growth to prove that his turnaround strategy is working. The company has increased spending on marketing, redesigned its homepage to personalize products shown to each visitor and is making it easier for shoppers to navigate the site’s 1 billion listings.