eBay trims 2014 revenue outlook amid economic fears
By Deepa Seetharaman
SAN FRANCISCO (Reuters) - EBay Inc trimmed its full-year revenue forecast on Wednesday, signaling a weaker-than-expected holiday shopping season for the e-commerce company as it prepares to split from its fast-growing payments arm, PayPal.
EBay's report comes as weak economic data from the United States and China fan fears of a global slowdown, forcing investors to re-examine the world economy only just emerging from one of the worst recessions in history.
"We've gotten indications from some luxury retailers over the last couple of days that times have been more challenging," said Scott Kessler, equity analyst at S&P Capital IQ.
"There are a lot of question marks when it comes to the sentiment on spending of consumers as we approach the holiday shopping season."
EBay shares fell more than 3 percent in after-hours trading.
U.S. retail sales, which account for about one-third of consumer spending, recorded their first decline since January last month.
Some analysts expressed concern over eBay's marketplaces division, which grew less than some forecast.
Kessler added that eBay's notable exposure to Europe might have also played a role in depressing its outlook. Continued...