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eBay has broadened the categories on its platform to include pre-owned sneakers and jewelry. However, the company’s executives warned of future uncertainties.
American e-commerce company eBay (NASDAQ: EBAY) has released better-than-expected financial results for its Q3 2022, which ended 30th September. The company benefits from expanding its luxury offering, and shoppers focused on refurbished goods. Following the announcement of the impressive Q3 2022 performance, eBay shares jumped almost 8% in after-hours trading. At the time of writing, the company’s stock is up 7.36% to $40.86 at premarket trading.
During Q3 2022, eBay said revenue came in at $2.4 billion, and Gross Merchandise Volume (GMV) was $17.7 billion. The company also sold its remaining shares in Adyen for about $120 million. In addition, the multinational e-commerce company returned more than $421 million to shareholders. This includes 120 million paid in cash dividends and $301 million of share repurchases.
eBay CEO Jamie Lannone talked about the significance of the Q3 2022 earnings. He said the report signifies outstanding growth against the company’s long-term objectives. Lannone also said the figures surpassed expectations for all major business metrics. He continued:
“I’m proud of our team and community for remaining resilient in the face of a challenging macroeconomic environment. With the investments we’ve made in our tech-led reimagination, we’re able to provide even more opportunity and value to our customers during these difficult times.”
eBay has broadened the categories on its platform to include pre-owned sneakers and jewelry. However, the company’s executives warned of future uncertainties like a strong US dollar. Also, the energy crisis in Europe is a major concern, as well as weak consumer confidence as the holiday shopping season approaches. There is currently a high demand for electronics and other high-value souvenirs like trading cards and watches. The executives noted that Europe’s worsening energy crisis has triggered an increase in the demand for home energy products in Germany.
An analyst a Benchmark, Daniel Kurnos stated:
“eBay still has risk from their ‘enthusiast’ buyer base reducing spend in their top categories, and eBay still has substantial international exposure… but eBay has just set a much lower bar and already takes a substantial discount.”
Since the year started, eBay has been recording losses, shedding nearly 43% in addition to a 50.10% fall over the past year. The company has also dropped 20.49% and 2/13% over the past month. In the last five days, eBay has lost more than 4%.
The e-commerce giant acquired TCGplayer recently for almost $295 million in cash. The acquisition of the leading tech platform for collectibles contributes to eBay’s focus category strategy. Also, the purchase complements the company’s aim at trading cards. In a press release, eBay said it will offer “strategic omnichannel capabilities like order fulfillment and cart optimization, maintaining its position as a desirable platform for trading card sellers and enhancing the overall experience for all customers.”