EBay forecasts first-quarter revenue below estimates, shares fall

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© Reuters. The German headquarters of eBay is pictured at Europarc Dreilinden business park south of Berlin in Kleinmachnow© Reuters. The German headquarters of eBay is pictured at Europarc Dreilinden business park south of Berlin in Kleinmachnow

(Reuters) – EBay Inc (O:) forecast first-quarter revenue below Wall Street targets on Tuesday, as the e-commerce company faces fierce competition from bigger rival Amazon.com Inc (O:), sending its shares down about 3% after the bell.

For the first quarter, eBay expects revenue of between $2.55 billion and $2.60 billion, while analysts were expecting $2.64 billion, according to IBES data from Refinitiv.

Facing stiff competition in its marketplace business, eBay has shifted focus to its advertising and payments businesses, as well as worked to make its platform simpler to use by adding features such as grouped listings and personal recommendations.

EBay is also reeling under pressure from activist investors Elliott Management Corp and Starboard Value to hive off some of its businesses to improve profitability.

EBay’s revenue for the fourth quarter ended Dec. 31 fell about 2% to $2.82 billion, beating analysts’ expectation of $2.81 billion.

Net income from continuing operations fell to $558 million, or 69 cents per share, from $763 million, or 80 cents per share, a year earlier.

On an adjusted basis, the company earned 81 cents per share, above the average analyst estimate 76 cents.

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