EBay's stock price declines following unimpressive forecast for the final three months of the year.

• EBay's shares dropped in after-hours trading following the company's weak forecast for the fourth quarter.
• The disappointing forecast overshadowed eBay's better-than-expected results for the third quarter.

On Wednesday, shares of the online marketplace dropped by 9% in extended trading after its third-quarter earnings and fourth-quarter guidance did not meet Wall Street's expectations.

Here's how the company did:

• Earnings: $1.19 per share vs. $1.18 per share expected by LSEG
• Revenue: $2.58 billion vs. $2.55 billion expected by LSEG

eBay predicted revenue for the current quarter to be between $2.53 billion and $2.59 billion, which represents a 1% decline to a 1% increase year over year. However, this guidance fell short of the average analyst estimate for fourth-quarter revenue of $2.65 billion, according to StreetAccount.

The company anticipates $1.17 to $1.22 in adjusted earnings per share in the fourth quarter, which is the same as the top end of the range predicted by consensus estimates.

EBay is facing increased competition in e-commerce from rivals such as Amazon, Walmart, and Temu and Shein, which have ties to China. To retain customers, the company has focused on niche categories like collectible sneakers, used luxury goods, and auto parts. Additionally, eBay has introduced AI-powered tools that offer personalized recommendations to shoppers and simplify the process of creating seller listings.

Despite not providing clarity on its forecast in the earnings release, eBay's chief financial officer, Steve Priest, stated that the company has seen "solid execution" on its strategic initiatives, which drove continued gross merchandise volume "growth amid a dynamic macro environment."

eBay's marketplace generated $18.3 billion in GMV, which exceeded analysts' projections of $18.1 billion, according to StreetAccount estimates.

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