eBay Surges 10% After Robust Second Quarter Earnings

San Jose, California — eBay shares rose 10% in after-hours trading on Wednesday after the online marketplace announced better-than-expected financial results for the second quarter, alongside a positive outlook for the upcoming period.

The company reported second-quarter revenue of $2.73 billion, surpassing analyst expectations of $2.64 billion. Additionally, adjusted earnings per share came in at $1.37, beating the forecast of $1.30. Gross Merchandise Volume (GMV), which reflects the total dollar value of items sold, grew by 6% year-over-year to $19.5 billion, exceeding estimates of $18.9 billion.

For the third quarter, eBay projected revenues between $2.69 billion and $2.74 billion, which also outmatches Wall Street’s anticipated revenue of $2.66 billion. The company’s guidance for adjusted earnings per share was set at $1.29 to $1.34, slightly above analyst expectations for $1.31.

In its earnings report, eBay mentioned that third-quarter GMV guidance considers possible disruptions from new tariffs and the potential abolition of low-value exemptions that allow certain imports to enter the U.S. duty-free. These changes, resulting from an executive order effective August 29, could impact shipping from various nations.

eBay CEO Jamie Iannone expressed confidence in the company’s strategy to adapt to future uncertainties. “We feel comfortable with the guidance that we put out there,” he said, noting that the company has repositioned much of its inventory from China to the U.S. in anticipation of regulatory changes.

Despite facing stiff competition from rivals like Amazon and Etsy, eBay is focusing on niche categories and using advanced technology to enhance user experience, including the adoption of artificial intelligence to help customers in product searches.

In addition to its positive earnings results, eBay also highlighted a commitment to shareholder value, with plans for share buybacks and dividends. The firm returned $759 million to shareholders through these measures, reflecting strong financial discipline as it aims for continued growth in the e-commerce arena.

As of the close of trading on Wednesday, eBay’s shares have increased by 25% for the year, while broader markets such as the Nasdaq have only gained around 9%. Looking ahead, analysts project that eBay will continue to grow, with full-year revenue estimates pegged around $10.65 billion and adjusted EPS growing in the coming years.