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Analyst Expects Lackluster Quarter from eBay Marketplaces

Another report is out with a negative assessment of eBay Marketplaces. SunTrust’s Bob Peck is expecting eBay to report a “lackluster” first quarter when it reports earnings next week.

And if it seems like everyone is picking on eBay, understand that eBay itself warned investors in January to expect things to get worse for Marketplaces before they got better after a disappointing fourth quarter where it saw year-over-year Marketplace growth of only 2 percent.

SunTrust Robinson Humphrey data shows continued weakness in auctions and sub-par growth in fixed price vs. the industry. “Further, FX (foreign exchange) has continued to trend down, which negatively impacts international growth as well as cross border trade (a hit to eBay and PayPal).”

Peck said Marketplaces traffic trends were more positive in in the first quarter compared to the fourth quarter, which could help improve the active buyer growth. However, he’s expecting slightly negative year-over-year growth for U.S. and International non-vehicle GMV.

He’s expecting eBay to update investors on the ongoing impact of Google SEO changes and password reset, with eBay now several quarters into spending on marketing and contra revenues to counteract their negative impact.

eBay reports earnings on Wednesday.

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Ina Steiner
Ina Steiner
Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com.