eBay Sinks as Pandemic Party Fizzles By Investing.com

By Christiana Sciaudone

Investing.com —  The pandemic party is coming to an end for eBay (NASDAQ:EBAY). 

The ecommerce company provided second quarter profit guidance that disappointed investors and missed expectations. EBay said earnings per share is expected at between 91 cents and 96 cents, compared to the consensus estimate of $1. Sales forecast of at least $2.98 billion topped consensus of $2.93 billion.

EBay has, of course, benefited from the pandemic, driving both revenue and profit higher over the past year.  That led shares to hit a record earlier this month. But with vaccinations abounding and the homebound no longer bound, our interests are changing to travel and really any kind of outdoor activity at all as long as it’s not at home. 

Susquehanna analyst Shyam Patil downgraded the company to neutral from positive, and, alongside other analysts, dropped the price target. 

“We are taking our chips off the table,” Patil said, according to StreetInsider. “At this point, with tough comps, the recovery, and increasing investments, we see the risk/reward as balanced for the stock and are moving to neutral.”