eBay shares fell Wednesday after the internet giant announced its third-quarter results of a net income of $689 million, or 53 cents a share. The weak forecast for fourth quarter caused a drop in shares of as much as 5.4% in extended trading, as reported by Bloomberg.com. Mobile ecommerce was strong, increasing by 75% in Q3, with 3.2 million new eBay customers from July 1 - September 30.
CEO John Donahoe remarked, "We delivered strong third quarter results, with mobile driving a significant portion of our new user growth and continuing to transform how customers shop and pay around the world. Our scale and experience, the strength of our global commerce platforms, our technology assets, and our mobile commerce capabilities strongly position us to be a leader in the commerce revolution underway. In the past 12 months we have enabled $200 billion of commerce volume, a 20 percent increase in a fairly lackluster macro environment. That growth demonstrates the strength of our core business and our power as a partner, not a competitor, to merchants, brands, and retailers." (Cnet.com)
Fourth-quarter sales are estimated at $4.5 billion to $4.6 billion. eBay typically offers a variety of holiday promotions with major retailers like Macys, as well as special trainings for its sellers to help them sell more product during the holiday season. eBay's top competitor, Amazon.com, has recently hired 70,000 additional employees to handle the 2013 holiday rush, so the battle for the online consumer's holiday dollars is set to begin.