Ebay’s shares rally amid strong Q3

Ebay millionaires

Ebay has comfortably met analysts’ expectations in its third quarter while predicting a repeat performance for the next one, sending its shares jumping six per cent.

In the three months to the end of September the online marketplace posted net profit of $721 million (£567 million), up 38.6 per cent from $520 million (£407.9 million) a year prior.

Meanwhile, it saw net revenues jump six per cent to $2.65 billion (£2.07 billion), matching analysts’ expectations, while forecasting revenues in the next quarter would just beat predictions – coming in between $2.85 billion (£2.23 billion) and $2.89 billion (£2.26 billion).

Despite this the total value of goods sold on its websites rose 4.8 per cent to $22.72 billion (£17.8 billion), just missing estimates of $23.4 billion (£18.35 billion).

Its jump in revenues and profits were attributed largely to major investments in product developments, brand marketing and simplifying its payment process, driving 177 million active buyers to its platform over the period, up from 175 million in the previous quarter.

“This quarter we continued to make foundational investments to improve the long-term competitiveness of our marketplace while setting the stage for significant growth opportunities,” president and chief executive Devin Wenig said.

“We will continue to innovate the customer experience while executing our growth initiatives in payments and advertising to position Ebay for future success.”

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