All right, take a look at shares of eBay. That stock is tumbling, down by about 9% this morning. It comes after eBay beat uh earnings estimates and revenue estimates.But the company's profit forecast for the current quarter missed expectations. That has investors concerned about shrinking margins ahead ahead of the holiday shopping season. Before today's decline, eBay's stock was up about 61% for the year to date. Uh at this point it looks like it's up by about 44% for the year to date. ...

Financial Data and Key Metrics Changes - Gross merchandise volume (GMV) grew by 4% to $19.5 billion, with revenue increasing by over 4% to $2.73 billion [9][35] - Non-GAAP operating income rose by 8% to $775 million, and non-GAAP earnings per share increased by 16% year over year to $1.37 [9][35] - The take rate was 14%, showing a modest year-over-year increase, with advertising, shipping, and financial services contributing positively [42][44] Business Line Data and Key Metrics Changes - Focus categories experienced GMV growth of over 10%, significantly outpacing core categories [10][36] - Collectibles, particularly trading cards, were the largest contributor to growth, with triple-digit GMV growth for Pokémon cards [10][11] - Motors, Parts, and Accessories contributed nearly one point of year-over-year GMV growth, driven by strength across major markets [13] Market Data and Key Metrics Changes - U.S. market GMV growth accelerated to 7%, exceeding expectations due to healthy consumer demand [38][39] - International GMV grew nearly 2% on an FX neutral basis, with foreign exchange providing a tailwind [39][41] - The U.K. and Germany investments helped navigate lower growth environments, with cross-border volume growth remaining stable [40][41] Company Strategy and Development Direction - The company is focused on enhancing the customer experience through generative AI, improving listing quality, and personalizing customer engagement [17][18][32] - eBay Live is a significant area of investment, aimed at transforming how enthusiasts discover and compete for high-demand inventory [22][23] - The company is expanding its Klarna partnership in the U.S. to attract younger demographics and improve conversion rates on high-ticket items [27][29] Management's Comments on Operating Environment and Future Outlook - Management noted that the business performed well in July, reflecting sustained healthy consumer trends in the U.S. [46] - The outlook for Q3 anticipates GMV between $19.2 billion and $19.6 billion, with revenue growth expected to be modestly higher than GMV [47][50] - The company remains cautious about potential disruptions from tariffs and trade policy changes [47][50] Other Important Information - eBay was recognized as one of Time's World's Most Sustainable Companies and Newsweek's World's Greenest Companies 2025 [31] - The company returned approximately $760 million to shareholders through repurchases and cash dividends [35][45] Q&A Session Summary Question: Insights on marketing and AI's impact on traffic generation - Management highlighted a full funnel marketing approach and noted efficiencies in lower funnel marketing spend due to competitive dynamics [56][57] Question: Future category growth expectations - Management indicated that existing focus categories will continue to drive growth, with strong performance across collectibles and P&A [62][64] Question: U.S. market strength and international comparison - Management noted broad-based strength in the U.S. market, while Europe remains challenging, but investments are offsetting some macro trends [71][72] Question: Trading cards market sustainability - Management acknowledged that trading card growth is not linear but remains optimistic about long-term growth potential [88] Question: Margin recovery and operating leverage - Management emphasized that top-line growth leads to healthy margins, focusing on balancing growth and profitability [90][91]