EBay Falls After Giving Weak Profit Outlook for Holiday Period

Core Insights - EBay's profit forecast for Q4 missed analyst expectations, raising concerns about narrowing margins as the holiday shopping season approaches [1][2] - The company is focusing on the growing demand for used and refurbished items, highlighted by its acquisition of Tise, a Nordic marketplace for second-hand goods [3] Financial Performance - EBay projected Q4 earnings per share between $1.31 and $1.36, while revenue is expected to be between $2.83 billion and $2.89 billion, falling short of analyst estimates of $1.39 per share and $2.8 billion in sales [2] - In Q3, EBay reported a profit of $1.36 per share and a revenue increase of 9% to $2.82 billion, surpassing analyst expectations of $1.34 per share and $2.73 billion in sales [4] Market Trends - Gross merchandise volume for Q3 rose 10% to $20.1 billion, exceeding the average estimate of $19.4 billion, indicating strong sales activity [5] - The number of active buyers reached 134 million as of September 30, slightly below the average estimate of 135 million [5] - US online spending during the holiday season is projected to increase by 5.3% year-over-year to $253.4 billion, despite overall holiday spending expectations declining due to tariff-related price hikes and a weakening labor market [3][4]