Ebay shares slid more than 10% in trading today following the company’s quarterly earnings report yesterday evening. Revenue was actually up over 5% for the last quarter, but shares dropped after Ebay revealed lower than expected forecast for the fourth quarter—the crucial shopping season.
The ecommerce giant posted a forecast below the bottom end of analyst expectations, sending the company’s stock price tumbling this morning. The drop erases a significant portion of eBay’s gains to date this year. In 2016, before today, the company’s stock was up nearly 18%.
“In Q3 we delivered good top- and bottom-line financial results, led by consistent performance across our business,” said Devin Wenig, President and CEO of eBay. “We continued to transform the shopping experience on eBay, delivered more personalization capabilities and began to activate our updated brand messaging.”