Please ensure Javascript is enabled for purposes of website accessibility

eBay Orders Surge During Pandemic; Raises Outlook for Second Quarter

By Donna Fuscaldo – Jun 4, 2020 at 2:23PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

eBay added six million buyers during April and May as business boomed during the pandemic.

eBay (EBAY -0.29%) is seeing strong demand during the COVID-19 pandemic, so much so that it has raised its revenue and EPS outlook for the second quarter. 

In a press release, the e-commerce company said it added about six million buyers in April and May and that its business is performing "significantly" better than the company anticipated when it reported first-quarter results on April 29. With people stuck at home under shelter-in-place orders, they have turned to e-commerce to get their goods. 

A tiny shopping cart with packages sitting on a open laptop.


As a result of strong demand, eBay now expects revenue to come in between $2.75 billion and $2.8 billion in the current quarter, representing 13% to 16% year-over-year growth. Previously it had expected revenue of between $2.38 billion and $2.48 billion, which would be down 2% to 2% growth. The tech stock said Non-GAAP EPS is forecasted at between $1.02 to $1.06 a share, up from $0.73 to $0.80 a share. If eBay hits the high end of the EPS range it will represent growth of 60%. eBay isn't updating its full-year guidance but said it's likely to be higher than it previously anticipated. 

According to the tech stock, it saw strength in global gross merchandise volume or GMV in April, which continued through May. All of its verticals are seeing significant acceleration compared to prior quarters. eBay called out Home & Garden, Electronics, Fashion, Auto Parts, and Collectibles as areas that are experiencing strong demand. The demand is coming from a combination of organic traffic, enhanced marketing, and higher conversions on its platform. eBay also said active buyer growth is accelerating amid the pandemic, with eBay adding 6 million new and reactivated buyers in April and May. 

In conjunction with the earnings announcement, the e-commerce stock also said it's donating $1.3 million to the NAACP Legal Defense Fund and Equal Justice Initiative to fight systemic racism and injustice.

Donna Fuscaldo has no position in any of the stocks mentioned. The Motley Fool recommends eBay and recommends the following options: long January 2021 $18 calls on eBay and short January 2021 $37 calls on eBay. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

eBay Inc. Stock Quote
eBay Inc.
$38.19 (-0.29%) $0.11

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/25/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.