EBay beats quarterly results estimates on steady demand for refurbished good

The e-commerce giant's third-quarter revenue forecast, however, fell short of analysts' estimates, signaling effects of a tough economy.

On Thursday, eBay 's second quarter revenue and profit beat street estimates through strong demand for second hand products, cheap auto parts and various accessories. However, the e-commerce giant’s Q3 revenue projection didn’t meet the analysts’ forecasts due to tough economic effects.

Including specialized categories of auto parts, collectibles and luxury accessories are ranged in a strategic approach for the company which seems to have more strength even with the economic headwinds that it has experienced. Therefore it is helping to face stiff competition from Amazon and China’s Alibaba Group Holding.

As potential new buyers continue to wait for the right moment to buy, it has become a challenge for the company to determine how they will survive economically in order to meet these demands. Instead of focusing solely on youngsters or high-end markets, it may be best to turn towards value-oriented options due to difficult financial situations.

The CEO Jamie Iannone said during a post-earnings conference that EBay has been training generative AI models and is presently employing them to sell fashion products. The agency anticipates further training of the models so as to encompass other categories too.

eBay's second quarter revenue of $2.57 billion beat estimates but its sales outlook of between $2.5 billion and $2.56 billion for the July to September period were below market expectations generally speaking, as per the information published by LSEG (London Stock Exchange Goods).

The forecast for adjusted profit per share in the current quarter between $1.15 and $1.20 was above analysts' estimates of $1.13.

Analysts expect the improving economic outlook for the year, having at least one interest rate cut and stronger consumer confidence, to boost the ecommerce platform's sales.

Excluding items, eBay reported profit of $1.18 per share, compared with estimates of $1.13 in earnings per share.

In the second quarter, the gross merchandise volume or total value of goods sold amounts to $18.4 billion increasing by 1%.

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