EBay Stock Sinks on Concerns About Holiday Shopping Season

Core Insights - EBay's guidance for the holiday shopping season was weaker than expected, leading to a drop in shares [1] - The company reported better-than-expected profit, sales, and gross merchandise volume (GMV) in Q3 [1] - Analysts expressed concerns regarding the company's GMV outlook for Q4 [2] Group 1 - EBay's fourth-quarter adjusted earnings per share (EPS) guidance is between $1.17 and $1.22, while revenue is expected to be between $2.53 billion and $2.59 billion, which is below analyst expectations of $1.21 and $2.58 billion [1] - In Q3, adjusted EPS was $1.19, revenue increased by 3% year-over-year to $2.58 billion, and GMV rose by 2% to $18.31 billion, all exceeding forecasts [1] - Jefferies analysts noted that failing to deliver a meaningful acceleration in Q4 GMV could raise questions about the sustainability of growth [2] Group 2 - Deutsche Bank analysts indicated that the tepid GMV growth outlook is shaking confidence in eBay's growth prospects [2] - Despite an 8% drop in shares, eBay's stock has increased by about one-third in value this year [2]