Signage at eBay headquarters in San Jose, California, U.S.
David Paul Morris | Bloomberg | Getty Images
Shares of eBay popped 10% in extended trading on Wednesday after the online marketplace posted stronger-than-expected results for the second quarter, and offered an upbeat forecast for the current period.
Here’s how the company did in the second quarter compared to analyst estimates compiled by LSEG.
Earnings per share: $1.37 adjusted vs. $1.30 expected Revenue: $2.73 billion vs. $2.64 billion expected
GMV, or the dollar value of items sold, grew 6% year over year to $19.5 billion. That topped analysts’ projected $18.9 billion, per StreetAccount estimates.
For the third quarter, eBay said revenue will land between $2.69 billion and $2.74 billion, above Wall Street expectations for $2.66 billion. The company also guided for adjusted earnings per share of $1.29 to $1.34. Analysts anticipated $1.31 per share.
EBay said third-quarter GMV would be in the range of $19.2 billion and $19.6 billion, which was higher than consensus estimates of $18.8 billion.
GMV guidance “contemplates potential disruptions from impending tariffs and the potential elimination of remaining de minimis exemptions,” eBay said.
Earlier on Wednesday, President Donald Trump signed an executive order ending the loophole for low-value packages shipped from all countries, effective Aug. 29. The provision enabled shipments valued below $800 to enter the U.S. duty free.
EBay CEO Jamie Iannone said in an interview following the earnings report that the company is “well suited” to navigate any further uncertainty generated by Trump’s tariff policies or changes to de minimis.
“When we look at what happened, for example, when de minimis was eliminated in China, it did have a deceleration in direct shipments, but a lot of the sellers started making their products available to buyers in other countries like the U.K. and Germany,” Iannone said.
He added that the company “forward deployed” about 75% of its inventory from China into the U.S. before the changes to de minimis policies.
“We feel comfortable with the guidance that we put out there,” Iannone said.
EBay faces robust competition from online retail rivals Amazon, Walmart and Etsy, along with upstarts like low-cost e-commerce platforms Temu and Shein. To keep buyers and sellers returning to its site, the company has embraced “enthusiast” shoppers and “focus categories,” such as collectible sneakers and trading cards, used luxury goods and auto parts.
The company in May named Peggy Alford, a former PayPal executive, as its new CFO, succeeding Steve Priest. EBay also announced a broader leadership restructuring that involved bringing its technology teams closer together, Iannone said.
The company has also implemented more artificial intelligence tools to help consumers find products on its site, including a shopping agent, which launched earlier this year.
“We’re already seeing really tangible benefits from generative AI on our P&L, and we think we’re only scratching the surface in terms of how to leverage our data,” Iannone said.
As of Wednesday’s close, eBay shares were up 25% for the year, while the Nasdaq has gained about 9%.
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