eBay (NASDAQ:EBAY) saw its stock tumble more than 5% on Thursday following a disappointing first-quarter revenue and gross merchandise volume (GMV) forecast that fell short of Wall Street’s expectations.
The decline came despite the e-commerce giant reporting solid fourth-quarter earnings that beat analyst predictions.
In its Q4 results, eBay posted adjusted earnings per share of $1.25, surpassing both the Visible Alpha consensus estimate and its own guidance of $1.17 to $1.22.
Revenue for the quarter edged up nearly 1% to $2.58 billion, aligning with analyst forecasts and slightly exceeding the company’s projected range of $2.53 billion to $2.59 billion.
However, the outlook for the current quarter painted a less rosy picture.
eBay projected Q1 revenue between $2.52 billion and $2.56 billion, well below the $2.60 billion analysts had anticipated.
The company also forecast GMV—a key metric tracking the total value of goods sold on its platform—of $18.3 billion to $18.6 billion, falling short of the $18.86 billion expected by Wall Street.
Despite Thursday’s drop, eBay’s stock has enjoyed a strong run over the past year, gaining nearly 40% in value.
The latest stumble, however, underscores the broader challenges facing the e-commerce sector as it navigates a shifting global economy.
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