(Reuters) – E-commerce platform eBay forecast fourth-quarter revenue below Wall Street estimates on Tuesday as rising competition from the likes of Amazon amplify the hit from softer consumer spending due to sticky inflation.
The San Jose, California-based company’s shares were down 4.3% in trading after the bell.
High interest rates and stubborn inflation across major economies in Europe as well as in the United States have further eaten into consumers’ discretionary budgets.
Analysts at Jefferies said earlier this month that web traffic on eBay continues to decline, with data showing a worsening trend through July to October this year.
While U.S.
online sales are expected to rise 4.8% in the crucial holiday season between Nov. 1 and Dec. 31, eBay faces stiff competition to attract traffic. Analysts expect Amazon’s Prime Day sale in October to pull more price-conscious customers.
EBay forecast current-quarter revenue in the range of $2.47 billion to $2.53 billion, compared with estimates of $2.60 billion, according to LSEG data.
The company also forecast current-quarter adjusted profit per share in the range of $1 to $1.05, compared with estimates of $1.04.
(Reporting by Chavi Mehta in Bengaluru; Editing by Shounak Dasgupta)
