EBay’s profit forecast disappoints, shares fall
Reuters) – EBay Inc warned Wall Street on Wednesday that profit this quarter could fall below analysts estimates as it invests in marketing and a revamped website to attract more shoppers, sending shares down more than 5 percent in after-hours trade.File photo – The eBay app is seen on a mobile phone in this illustration photo October 16, 2017. REUTERS/Thomas White/IllustrationThe online marketplace is making a big push to catch up to Amazon.com Inc with three-day guaranteed delivery and a more user-friendly website, hoping to distinguish itself as a haven for specialty items rather than commodity products.It said marketing expenses rose by nearly 5 percent in the third quarter from a year earlier, as it got that message across to potential customers.Factoring in the higher costs, eBay forecast fourth-quarter adjusted profit, excluding some costs, of between 57 cents and 59 cents per share. On that basis, analysts on average were expecting a profit of 59 cents per share, according to Thomson Reuters I/B/E/S.
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