eBay disappoints investors as growth plans cut into forecasts

City A.M. Reporter
WEBSITE eBay yesterday posted a disappointing earnings forecast for the second quarter, sending its shares down in after-hours trade

The e-commerce giant forecast a second-quarter profit of $0.61 to $0.63 per share and revenue of $3.8bn (£2.5bn) to $3.9bn.

Analysts were looking for earnings of $0.66 a share on revenue of $3.95bn, according to data. Late last month, eBay set aggressive three-year growth targets, based on international expansion plans and more focus on mobile commerce.

The company is investing heavily in these initiatives and such spending may be behind the weaker second-quarter profit forecast, equity analysts at Morningstar said.

Shares fell 1.8 per cent to $55.10 in after-hours trading.