eBay’s Q4 Results As Expected, Stock Stumbles On Bleak Guidance

eBay‘s fourth quarter financial results and metrics were largely in line with our expectations. The company reported modest 5% year-over-year (y-o-y) growth in active buyers to 162 million, with gross merchandise value almost flat at $21.9 billion. eBay’s Q4 top line was flat and met the Reuters’ compiled consensus estimate of $2.32 billion. For full year 2015, eBay’s total revenue declined by 2% y-o-y to $8.6 billion with $6.83 billion contributed by transaction revenues and $1.76 billion contributed by marketing services and other revenues. In terms of bottom line, eBay’s Q4 and full year 2015 earnings of 50 cents a share and $1.83 per share, respectively, were in line with Reuters’ compiled consensus estimates. 

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