Shares of eBay (NASDAQ:EBAY) are running nearly 7% higher on Thursday morning after the online marketplace raised its second-quarter earnings outlook on better-than-expected results during the COVID-19 pandemic.
At the end of April, eBay expected to generate revenue between $2.38 billion to $2.48 billion in the second quarter, but now says it is doing significantly better than the forecast in its earnings release.
The tech stock now expects revenue in a range of $2.75 billion to $2.8 billion and adjusted earnings per share of $1.02 to $1.06, compared to its previous guidance of $0.73 to $0.80 in EPS.
eBay is firing on all cylinders at the moment. "All major verticals are accelerating significantly compared to previous quarters," it says, which it credits to greater organic traffic to the site, better marketing, and converting more people into customers once they come to the platform.
Notably, it also says its classified ad revenue is at the high end of its previous forecasts, with automotive subscription revenue improving as more car dealerships reopen. Many platforms have suffered from a collapse in advertising due to a lack of engagement with consumers, though eBay seems to have bounced back faster than expected from the pressure felt in the first quarter.