For those of you who don’t know, EBay is one of the most popular and oldest e-commerce platform in the world and it started way before Amazon came into existence. However, the circumstances and leadership at the company were such that it did not take off as much as it should have and not certainly at the level where Amazon is right now. Still, EBay is considered as one of the favourite e-commerce marketplaces for most in the US and it has become the go-to place for people who are looking for used items on a cheap price.
It is worth noting that EBay just posted their revenue outlook for the next quarter and the year going forward and they have posted good numbers thanks to their view of increase in growth due to major sneaker sales as well as people looking to buy refurbished items. In an interview, EBay CEO Jamie Iannone said, “There remains a dynamic and uncertain macroeconomic environment across the globe with inflation and rising interest rates and pressured consumer confidence … but our focus categories remain relatively resilient”
After posting upbeat results, EBay’s investors took a huge sigh of relief as they were worried about EBay’s statement earlier this year that the demand weakness will persist in first half of 2023. It is worth noting that EBay recently acquired a trading cards marketplace TCGPlayer last year which will also help them drive sales through that avenue. Also worth noting is the fact that EBay has started expanding its listings under refurbished electronics and luxury bags as well as watches and collectible categories.
While some analysts believed that EBay will have a revenue of $2.43 billion in the second quarter of this year, it is worth noting that the company has posted an upbeat revenue forecast of $2.47 billion to $2.54 billion which is obviously higher than estimates and has been the main catalyst in rising the stock prices of company’s shares to 5% in after-hours trading. You should also note, however, that if EBay fails to match its revenue estimates that it has projected for its investors then its stocks may come crashing down as well so it is always a double-edged sword.