EBay Stock Falls On Weak Forecast: Retail Investors Turn Bearish

Specialty e-commerce player eBay's (EBAY) forecast missed expectations after a strong showing in the first quarter, dragging shares down 1.5% in extended trading on Wednesday.

The company also announced the appointment of former Paypal senior executive Peggy Alford as CFO, a role she will start from May 12, and changes to the top management structure.

EBay — which focuses on collectibles, handbags, shoes, and watches — is seeing momentum in its business due to its focus on select categories and geographically specific investments, CEO Jamie Iannone said.

For the first quarter, revenue rose 1% to $2.59 billion, beating analyst estimates of $2.55 billion from FactSet.

Adjusted earnings came in at $1.38 per share, also higher than a $1.34 consensus estimate.

However, its second-quarter forecast missed expectations.

The company expects revenue of $2.59 billion to $2.66 billion, compared with analyst estimates of $2.6 billion. On an adjusted basis, eBay forecast per-share earnings between $1.24 and $1.31 versus expectations of $1.29.

EBay is rejiggering its leadership structure to focus on innovation and collaboration amid “a rapidly evolving digital and AI-powered landscape,” the company said.

It said it is combining the product and market teams and consolidating its engineering team to “operate with greater speed and drive operational scale.”

On Stocktwits, retail sentiment turned 'bearish' from 'bullish' a day earlier, and message volume rose to 'extremely high.'

Shares of Ebay are up 10% this year, as of their last close.

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