EBay's disappointing forecast fuels stock decline
By Mari Saito and Sai Sachin R
(Reuters) - EBay Inc forecast weaker-than-expected revenue and profit for the current quarter and full year, as the e-commerce company struggles against a strong dollar while trying to revamp its core marketplace business.
Shares of the retailer fell more than 12 percent to $23.51 in extended trading on Wednesday.
The online retailer, which faces intense competition from e-commerce giant Amazon.com Inc, has also been hit by brick-and-mortar rivals like Wal-Mart Stores Inc that are aggressively boosting their online presence.
The company said its gross merchandise value, or the total value of all goods sold on its site, rose 5 percent after accounting for foreign exchange impact.
Under its new chief executive Devin Wenig, eBay has returned to its roots, refocusing on unique inventory and smaller sellers.
"I want to grow our metrics faster but I am very pleased with where we are," said Wenig in an interview with Reuters.
The company forecast full-year adjusted profit of $1.82-$1.87 per share and revenue of $8.5 billion-$8.8 billion.
That was lower than analysts' average expectation of $1.98 per share in profit and $8.99 billion in revenue, according to Thomson Reuters I/B/E/S. In 2015, it reported $8.6 billion in revenue. Continued...