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Investing.com - Shares of eBay (NASDAQ:EBAY) surged by more than 12% in premarket trading Wednesday after the e-commerce platform topped second-quarter expectations and issued upbeat guidance.
The results were buoyed by robust growth in advertising, continued strength in collectibles, and the expansion of artificial intelligence-enhanced tools designed to personalize shopping across eBay’s global marketplace.
For the quarter ended June 30, eBay reported adjusted earnings per share of $1.37, beating Wall Street’s consensus estimate of $1.29. Revenue climbed 6% year over year to $2.7 billion, ahead of forecasts for $2.64 billion.
Gross merchandise volume (GMV) accelerated to $19.5 billion, up 6% as reported and 4% on a foreign exchange-neutral basis.
Adjusted operating margin for the quarter improved to 28.4% from 27.9% a year ago. The company’s total advertising revenues reached $482 million, with first-party ad revenue rising 19% as-reported to $455 million, accounting for 2.5% of GMV.
“EBay delivered another strong quarter, with results exceeding expectations across the board,” said Jamie Iannone, Chief Executive Officer, in a statement. “Our momentum reflects the strength of our strategic execution and the resilience of our marketplace.”
The company highlighted several milestone initiatives during the quarter, including the formal launch of eBay Live in the U.K. and an AI shopping agent now available to a subset of U.S. users. EBay also introduced a generative AI video tool for U.S. sellers, while its Authenticity Guarantee program surpassed one million items inspected in a single quarter.
EBay continues to focus on its core verticals, including trading cards, collectibles, and luxury fashion, amid fierce competition from Amazon (NASDAQ:AMZN) and niche platforms. Its recommerce strategy gained further momentum with national campaigns and celebrity collaborations, and eBay played a key role in forming the bipartisan Recommerce Caucus in Congress, signaling its policymaking ambitions.
For the third quarter, eBay expects non-GAAP earnings per share of $1.29 to $1.34 and revenue between $2.69 billion and $2.74 billion, both above current analyst projections. The company also declared a $0.29 per-share dividend payable Sept. 12 and repurchased $625 million in shares last quarter, signaling continued commitment to shareholder returns.
(Scott Kanowsky contributed reporting.)