InstaForex InstaForex

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
 
European Markets Lower as Fiat Chrysler, Maersk Pared Losses
21 Aug 2017, 23:49 UTC+00   
Views today: 1318 
Canada Wholesale Trade Down 0.5% in June
22 Aug 2017, 00:49 UTC+00   
Views today: 1318 
Gold Prices Lower; Investors Cautious Ahead of Jackson Hole...
22 Aug 2017, 01:22 UTC+00   
Views today: 1318 
Sempra Energy Strikes Deal to Buy Oncor for $9.45 Billion
22 Aug 2017, 02:06 UTC+00   
Views today: 1316 
Wall Street Mostly Higher as Tech Stocks Drop
22 Aug 2017, 00:10 UTC+00   
Views today: 1315 

All Prime news

Start trading with
no risks and investments
With new Start-Up Bonus of $1000
Get bonus
55%
from InstaForex
on every deposit