Prime News

eBay’s Profit Guidance Disappoints amid Firm’s Major Platform Revamp

eBay Inc. issued a second-quarter profit guidance that missed analysts estimates, as the online firm focuses its spending on overhauling and marketing its e-commerce platform in a bid to keep up with its rivals.

Shares of the firm lost 2.5 percent to trade at $33 per share after the bell.

eBay is transforming its platform in a bid to attract more shoppers, as well as to better perform in a market that has tough competitors such as Amazon. The revamp meant transitioning away from its previous format of online auctions towards fixed-price sales and product landing pages, which are easier to navigate compared to the dozens of listing sellers would make for a single item to be sold.

The company has also bolstered its marketing budget by launching a rare TV campaign before 2016's holiday shopping season. This caused sales and marketing expenditures to jump 4.5 percent to $562 million in Q1, while spending on product development surged 16.3 percent to $278 million.

eBay expects Q2 adjusted profit to clock in between 43-45 cents per share. The guidance range was lower than the projected profit of 47 cents per share. But the firm stood by its earlier full-year profit estimate of $1.98-$2.03 per share and expressed its expectation for more growth in the second half of the year.
Recommend: Prime News
 
Gold Falls to 2-Week Lows on Recent Equities Rally
26 Apr 2017, 02:30 UTC+00   
Views today: 1385 
Samsung Posts Best Quarterly Profit Despite Note 7 Debacle
26 Apr 2017, 04:33 UTC+00   
Views today: 1368 
Wall Street Gains as Nasdaq Rises Above 6,000
26 Apr 2017, 01:07 UTC+00   
Views today: 1363 
Bitcoin Near All-Time Record Peak as SEC to Review Bitcoin ETF
26 Apr 2017, 02:00 UTC+00   
Views today: 1360 
Costco to Issue Special Dividend to Investors
26 Apr 2017, 02:14 UTC+00   
Views today: 1360 

All Prime news