eBay (NASDAQ:EBAY) is a San Jose-based company that operates marketplace platforms that connect buyers and sellers in the United States and around the world. Shares of this technology stock have dropped 5.6% in 2024 as of close on Tuesday, January 23. The stock is now down 11% in the year-over-year period.
On Tuesday, January 23, the company announced that it would slash 1,000 jobs. That represents 9% of its workforce. In a blog post, CEO James Iannone wrote that eBay’s staff and expense size had “outpaced the growth of our business”. That influenced the decision by the executive team to move forward with heavy job cuts. eBay will also end its relationship with many outside contractors in a bid to reduce its operating expenses further. Iannone also stated that eBay will seek to be more “nimble” after these moves, which it says is essential in a “challenging” economic environment.
Investors can expect to see eBay’s fourth quarter and full-year fiscal 2023 earnings in the weeks ahead. In the third quarter (Q3) of 2023, the company reported revenue growth of 5% year-over-year to $2.5 billion. Meanwhile, gross merchandise volume (GMV) increased 2% to $18.0 billion. It reported total operating expenses of $1.34 billion and $3.89 billion in the year-to-date period. Both of those measures outpaced its net income in Q3 and for the first three quarters of the fiscal year.
Shares of eBay currently possess a price-to-earnings ratio of 8.1, which puts this tech stock in favourable value territory compared to its industry peers at the time of this writing. Investors will want to watch its next earnings report closely as it seeks to cap the 2023 fiscal year on a positive note.