(Bloomberg) — EBay Inc. warned investors that first-quarter sales will miss estimates as shoppers return to pre-pandemic spending habits.
The shares fell about 12% in extended trading.
Sales will be $2.43 billion to $2.48 billion in the period ending in March, the San Jose, California-based company said Wednesday in a statement.
Analysts, on average, estimated $2.6 billion, according to data compiled by Bloomberg. Earnings, excluding some items, will be $1.01 to $1.05 per share, missing estimates of $1.07.
The momentum EBay gained during the pandemic when people abandoned stores for websites has been fading as shoppers return to in-person browsing and buying.
Chief Executive Officer Jamie Iannone maintains the company’s advertising and payments businesses can boost profits even if total spending on the site falls.
The shares fell to a low of $47.72 in extended trading after closing at $54.59 in New York.
The stock has dropped more than 11% over the past 12 months.
EBay ended the quarter with 147 million active buyers, down 9% from a year earlier. Gross merchandise volume, which is the value of all goods sold on the site, fell 10% to $20.73 billion in the period ended Dec.
31.
EBay has been divesting pieces of itself to appease activist investors discouraged by slow growth. In November, EBay said it completed the sale of just more than 80% of its South Korean online marketplace to local retailer E-Mart Inc.
for $3 billion.
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