EBay Shares Drop 9% as Weak Holiday Forecast Overshadows Strong Quarte

eBay shares fall 9% as weak holiday profit forecast and U.S. tariff changes cloud outlook despite strong Q3 results.

EBay Shares Slide Nearly 9% as Holiday-Quarter Profit Forecast Misses Expectations

eBay shares tumbled nearly 9% after the company issued a weaker-than-expected profit forecast for the holiday quarter, overshadowing an otherwise strong third-quarter performance. The e-commerce giant warned of persistent macroeconomic pressures and new U.S. trade rules that are weighing heavily on cross-border sales.

For the third quarter, eBay reported revenue of $2.82 billion and adjusted earnings of $1.36 per share, surpassing Wall Street estimates of $2.73 billion and $1.33 per share. However, investors were unimpressed as the company projected fourth-quarter earnings between $1.31 and $1.36 per share, below analyst expectations of $1.39.

CEO Jamie Iannone said eBay continues to face “macroeconomic challenges across international markets,” citing weaker global consumer confidence and disruptions from new customs tariffs. The recent removal of the U.S. de minimis exemption, which previously allowed duty-free imports on shipments under $800, has significantly slowed cross-border trade into the country.

CFO Peggy Alford noted a “deceleration in year-over-year volume growth starting in September” following the policy change, particularly impacting sellers in Japan and Canada. The shift has created uncertainty for small businesses and raised prices for imported goods.

Despite the broader slowdown, eBay saw a spike in demand for bullion and collectible coins, driven by rising precious metal prices — though executives warned the trend may be temporary.

Analysts said the cautious forecast signals limited near-term growth potential. “The stock slide suggests investors aren’t convinced by eBay’s growth runway,” said Michael Ashley Schulman, chief investment officer at Running Point Capital.