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SHOCKING DECLINE! eBay Shares Plummet 1% Amid Earnings Countdown! Will They Survive?
Hold onto your wallets, eBay fans! In a surprising twist, eBay Inc. (NASDAQ: EBAY) has seen its shares tumble 1% this Wednesday! Despite a stellar 12% surge over the past three months, the ecommerce giant is bracing for a high-stakes earnings report that could shake things up drastically on February 26 after the market closes. Let’s break down the jaw-dropping details!
REVENUE REVEAL: WILL THEY MEET EXPECTATIONS OR FALL SHORT?
eBay is aiming for a revenue range of $2.53-2.59 billion for Q4 2024, showing little growth amidst fierce competition—only a slight dip to a slight rise year-over-year, depending on your perspective. Wall Street analysts are holding their breath, expecting a revenue score of $2.58 billion. That’s right; they’ve got their eyes glued on last year’s $2.56 billion mark. Meanwhile, Q3 2024 saw a 3% rise to $2.57 billion, but can they keep the momentum going?
EARNINGS WHIRLWIND: BIG NUMBERS ON THE LINE!
Hold on tight, because earnings per share (EPS) are sending shockwaves through the financial community! eBay is forecasting GAAP EPS of $0.96-1.01 and adjusted EPS between $1.17-1.22. Analysts are bucking for an EPS prediction of $1.20. To put that in perspective, last year’s Q4 served up an adjusted EPS of just $1.07! Q3 was a bit more promising, with an impressive 16% year-over-year jump to $1.19!
TICKING TIME BOMB: GMV PREDICTIONS IN THE BALANCE!
The plot thickens! eBay expects its gross merchandise volume (GMV) to ring in at $18.9-19.3 billion for Q4 2024. This ambitious outlook is banking on heavy-hitting categories and investments in key markets like the UK and Germany. But beware! An unforgiving macroeconomic environment could spell trouble. Last quarter, GMV crept up just 2% YoY, reaching $18.3 billion—will this quarter be more explosive, or is trouble lurking around the corner?
COLLECTIBLES TAKE CENTER STAGE: CAN THEY HOLD THE LINE?
Adding fuel to the fire, eBay’s collectibles sector is on fire, with standout performance in motors, parts and accessories, and luxury fashion booming! But will it be enough to take them over the finish line? Pre-loved fashion is picking up steam, especially in the UK. eBay is laser-focused on its C2C sellers, who bring diverse inventory and less price sensitivity. With 60% of their GMV coming from used and refurbished items, can these treasures save the day?
MARGIN PROJECTIONS: STEADY AS SHE GOES!
As if the suspense isn’t thick enough, eBay anticipates an adjusted operating margin of 26.5-27.0% for Q4! Last quarter, they managed to bump it up to 27.2% from 26.4% a year ago. The race is on!
MYSTERIOUS ACQUISITION: CARAVAN OF CARS!
In an exciting twist, eBay just acquired Caramel, an online automotive transaction provider! This clever move promises to streamline car sales online. Is this acquisition a game-changer? More explosive details are promised in the earnings report!
Stay tuned as we countdown to eBay’s Q4 earnings reveal! Will they hit the jackpot or crumble under pressure?
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