The online auction giant eBay reported earnings per share (EPS) of $1.19 in the third quarter of its 2024 fiscal year, after posting $2.47 per share in the same quarter the previous year. Although the result slightly exceeded analysts' expectations of $1.18, the more than 100 percent drop in EPS indicates a significant deterioration in profitability.

eBay's revenue rose compared to the previous year to $2.6 billion, surpassing analysts' expectations of $2.55 billion. In the same quarter last year, the company generated $2.50 billion, which boosts the current quarter's revenue growth to about 4 percent. This increase in revenue indicates strong demand and successful sales strategies.

Despite Exceeding Sales Expectations, Investors Reacted Disappointedly to the Quarterly Figures. The eBay Stock Listed on NASDAQ Fell by 9.02 Percent to $56.98 in After-Hours Trading. Experts Attribute the Price Decline Mainly to the Significant Drop in Profits, Which Has Unsettled Investors and Cast Doubt on the Company's Future Profitability Expectations.

Financial analysts criticized that the decline in EPS despite revenue growth indicates increased costs and possibly inefficient business processes. "The profit decline is alarming and suggests that eBay cannot effectively maintain its margins, even when revenue is rising," commented an analyst from JPMorgan Bank.

In its earnings announcement, eBay emphasized that rising operating costs and investments in new technologies have impacted profitability. CEO Jamie Iannone stated: "While we are pleased to have exceeded our revenue targets, we acknowledge the challenges associated with rising costs. We are working hard to increase our efficiency and improve margins.

The future prospects of eBay remain mixed. While revenue growth is positive, the company's cost structure and profitability urgently need to be addressed to regain investor confidence and ensure sustainable financial stability.