In the pre-market trading session on Thursday, eBay Inc.'s (EBAY) stock experienced a significant plunge of 7.74%. The e-commerce giant's shares tumbled after the company provided weaker-than-expected revenue guidance for the first quarter of 2025, overshadowing its better-than-anticipated fourth-quarter earnings results.
For the fourth quarter of 2024, eBay reported an adjusted earnings per share of $1.25, surpassing analysts' consensus estimate of $1.20. However, the company's revenue guidance for the current quarter fell short of Wall Street's expectations, signaling potential weakness in demand for its products and services.
eBay forecasted first-quarter revenue in the range of $2.52 billion to $2.56 billion, lower than analysts' average estimate of $2.59 billion. This disappointing guidance overshadowed the company's solid fourth-quarter performance, leading to the significant sell-off in eBay's stock during the pre-market trading session.