The eBay logo at San Jose, California, headquaters (Justin Sullivan/Getty Images)

EBay beats Q4 earnings estimates, but investors hit the sell button on lukewarm guidance

EBay shares sank after the second-largest online marketplace delivered a lukewarm first-quarter forecast.

2/26/25 5:20PM

Shares of eBay sank 8% in after-hours trading after the giant online marketplace delivered a lukewarm forecast for the first quarter. On paper, eBay’s fourth quarter looked solid: adjusted earnings per share came in at $1.25, topping Wall Street expectations of $1.20. Meanwhile, revenue grew a modest 1% to $2.58 billion, but was still in line with estimates. Gross merchandise volume — a key metric for the company — also rose 4% to $19.3 billion, surpassing analyst expectations of $19.0 billion.

But a strong past performance wasn’t enough to ease fears of what’s ahead. EBay’s revenue forecast for the current quarter came in between $2.52 billion and $2.56 billion, falling short of analysts’ $2.59 billion projection.

Investors have watched eBay’s marketplace closely as it deals with slowing GMV growth and shrinking margins. EBay has been navigating a shift in consumer spending as demand cools for collectibles and refurbished goods. Before the post-earnings drop, eBay’s stock had risen about 57% in the past year.

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Retail traders are “skipping the dip” this time

Here’s one noteworthy feature of the recent market downturn that has the S&P 500 poised for its worst week since reciprocal tariffs were announced in early April: retail traders seemingly aren’t eager to buy the weakness in single stocks the way they used to be.

JPMorgan strategist Arun Jain has flagged that retail traders instead appear to be “skipping the dip.”

“In contrast to the behavior observed during the post-Liberation Day selloff, retail investors did not seize the opportunity to buy-the-dip on Tuesday, with a few exceptions such as META,” he wrote of the day where the benchmark US stock index fell 1.2%. “In fact, they scaled back their ETF purchases and turned net sellers in single stocks.”

Then on Thursday, when the S&P 500 fell 1.1%, Jain projected that retail traders sold $261 million in single stocks. Through noon ET on Friday, his daily outflow estimate stands at $851 million.

With that intel, it’s little wonder why the carnage this week has been particularly intense in more speculative single stocks that had been favored by the retail community, including IREN, IonQ, Rigetti, Cipher Mining, Bloom Energy, and Oklo.

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Air taxi maker Archer Aviation is deep in the red on Friday morning after reporting its third-quarter results after the bell Thursday. The stock is down more than 12%.

Investors don’t appear to be thrilled about the company’s $650 million direct stock offering, announced alongside its results.

The move marks at least the third major equity raise, and dilution, for Archer this year. The company raised $300 million from a new stock sale in February, and sold $850 million worth of shares in June.

On Archer’s earnings call Thursday, interim CFO Priya Gupta said the company came to the decision after “substantial inbound interest.” According to Gupta, the company has heard from government and commercial partners that liquidity is a “key driver to their decisions of who to partner with.” With its latest share sale, Archer said its total liquidity is more than $2 billion.

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