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EBay’s Shares Tumble On Weak Holiday Season

January 27, 2016, 9:18 PM UTC
Ebay Reports Quarterly Earnings
SAN JOSE, CA - JANUARY 22: A sign is posted in front of the eBay headquarters on January 22, 2014 in San Jose, California. eBay Inc. will report fourth quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images)
Photo by Justin Sullivan—Getty Images

(Reuters) – EBay forecast lower-than-expected revenue and profit for the current quarter and the full year, sending the company’s shares (EBAY) down nearly 10% in extended trading.

The company forecast first-quarter adjusted profit of 43-45 cents per share and revenue of $2.05 billion-$2.10 billion.

Analysts on average were expecting a profit of 48 cents per share and revenue of $2.16 billion, according to Thomson Reuters I/B/E/S.

The company’s full-year adjusted profit forecast of $1.82-$1.87 per share and revenue forecast of $8.5 billion-$8.8 billion also missed analysts average estimates.

EBay, which is facing stiff competition from e-commerce rival Inc as well as traditional retailers, also reported that revenue did not grow in the holiday quarter.

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The company, which derives nearly 60% of its revenue from overseas, also faces headwinds from a strong dollar.

EBay’s revenue was $2.32 billion in the fourth quarter ended Dec. 31, flat with a year earlier and in line with analysts expectations.

Net income fell to $477 million, or 39 cents per share, from $1.02 billion, or 82 cents per share.