eBay Stock Drops After-Market After Disappointing Q1 Revenue Guidance: Retail Sentiment Sours

Shares of eBay Inc. dipped more than 8% in after-hours trading on Wednesday after the global commerce player gave disappointing revenue guidance for the current quarter despite reporting better-than-expected fourth-quarter earnings, dampening retail sentiment.

Earnings per share (EPS) came in at $1.25, beating the estimated $1.20 expected by analysts, according to Stocktwits data. Its Q4 revenue, up 1% year-over-year, stood at $2.58 billion, beating estimates of $2.57 billion.

Its non-GAAP operating margin increased to 27.0% for the fourth quarter of 2024, compared to 26.7% for the same period last year.

​​"eBay achieved three consecutive quarters of GMV growth to end 2024, and we took significant steps toward our vision of reinventing the future of e-commerce for enthusiasts," said Jamie Iannone, CEO of eBay. "I'm proud of how the team has innovated for our buyers and sellers, which has driven significant value for shareholders."

For Q1, the company projected adjusted EPS between $1.32 and $1.36. That compares to the consensus estimate of $1.33. Revenue is projected between $2.52 billion and $2.56 billion, compared with the consensus estimate of $2.59 billion. Gross merchandise value (GMV) is projected between $18.3 billion and $18.6 billion.

Sentiment on Stocktwits turned ‘extremely bearish’ compared to ‘bullish’ a week ago. Message volume jumped to ‘ extremely high’ territory from ‘normal.’

eBay's board has declared a cash dividend of $0.29 per share of the company's common stock, payable on March 28 to stockholders of record as of March 14, 2025.

eBay stock is up 11.61% year-to-date.

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