eBay Projects Revenue That Tops Estimates on Customer Growth…

    

Photographer: David Paul Morris/Bloomberg

EBay Inc. gave revenue and profit forecasts for the current period that topped analysts’ estimates, suggesting the company is gaining new customers amid an e-commerce boom. Shares jumped about 10% in extended trading.

Sales will be $2.94 billion to $2.99 billion in the first quarter, the San Jose, California-based company said Wednesday in a statement. Earnings, excluding some items, will be $1.03 to $1.08 a share. Analysts estimated profit of 85 cents a share on sales of $2.54 billion.

Pandemic-wary shoppers have turned to online marketplaces like EBay and Amazon.com Inc. to avoid stores in the era of social distancing. EBay said it ended the quarter with 185 million active buyers, an increase of 7%.

“EBay is proving that it has the ability to sustain the gains it is seeing from Covid,” said Ygal Arounian, an analyst at Wedbush Securities. “We expect these trends to increasingly become ingrained in consumer behavior, which will support EBay in 2021.”


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