Tech stock under pressure: eBay Inc (NASDAQ: EBAY)

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eBay Inc (NASDAQ: EBAY) stock fell over 3.2% on 29th January, 2020 (As of 12:31 pm GMT-5; Source: Google finance) after the company project the first-quarter revenue to be below analysts’ estimates, as the e-commerce company faces fierce competition from Amazon.com Inc and Walmart Inc. The company has now changed 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.

Meanwhile, the company is under pressure from activist investors to hive off some of its businesses for the improvement of profitability. After the pressure from Elliott Management Corp and Starboard Value, eBay in November agreed to sell its ticketing unit, StubHub, for $4.05 billion to ticket reseller Viagogo Ltd. The sale is expected to close by the end of the first quarter of 2020, subject to closing conditions. Further, the company has announced its intent to acquire Cox Automotive Media Solutions as part of the eBay Classifieds Group in Australia , which will create a strong local automotive offering that makes it easier to buy, sell, and review cars.

EBAY in the fourth quarter of FY 19 has reported the adjusted earnings per share of 81 cents, beating the analysts’ estimates for the adjusted earnings per share of 76 cents, according to figures compiled by Thomson Reuters. The company had reported 2.1 percent fall in the adjusted revenue to $2.82 billion in the fourth quarter of FY 19, which is above the analyst’s expectation of $2.81 billion. Gross merchandise volume (GMV) was down 5% on an as-reported basis to $23.3 billion , and down 4% on a FX-Neutral basis. Active buyers rose 2% across eBay’s platforms, for a total of 183 million global active buyers.

Additionally, the company had returned $1.1 billion to shareholders in Q4 and $5.5 billion to shareholders in 2019 through share repurchases and cash dividends. The company has declared a quarterly dividend of $0.16 per share, which is a 14% increase from the prior quarterly dividend, and expands share repurchase authorization by an additional $5 billion.

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

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