eBay Sales Drop 6% in the First Quarter of 2019 on Revenue of $2.6 billion.
It was not all dismal, eBay profits did grow slightly due to fees on foreign earnings and a strong U.S. Dollar. eBay Inc. ( EBAY), a global E- commerce company, delivered revenue for the quarter ended March 31, 2019 of $2.6 billion, increasing 2% on an as-reported basis and 4% on a foreign exchange (FX) neutral basis, primarily driven by gross merchandise volume (GMV) of $22.6 billion, down 4% on an as-reported basis and down 1% on a FX-Neutral basis.
Meanwhile over at Amazon:
Amazon reported a huge beat on profits and matched estimates for revenue in its first-quarter earnings results.
The quarterly numbers come at a time when Amazon is experiencing slowing revenue growth but fatter profit margins Amazon has been one of the best-performing big tech stocks this year. Amazon is up 28% in 2019, and is currently the third most valuable company in the world, behind Microsoft and Apple.
Amazon’s revenue slowed down across the board. Total revenue grew 16.9% compared with the year-ago period. This represented the slowest growth since the first quarter of 2015. Amazon’s North American revenue saw a 17% increase, compared with last year’s 46% growth, while international growth dropped to just 9%, down from the previous year’s 34% growth rate.
Amazon’s advertising business, found in the “Other” category, saw a significant drop. Advertising saw only 34% revenue growth to $2.7 billion, after growing at least 50% in the past 5 quarters. Physical stores revenue, mostly Whole Foods, grew just 1% year over year to $4.3 billion. When you consider how strongly Amazon has been promoting on-site advertising –this is a stunning number and a real surprise to me.
Amazon’s cloud service, still continues solid growth. It showed an almost 41% sales increase, although that was lower than last year’s 49% growth rate.
Although these numbers are somewhat disappointing, at 17% sales growth versus -6%, they still blow eBay out of the water. During this same period, overall online sales increased by 7% and nationally retail sales were up almost 10%.
When you consider that eBay used to experience 10% to 25% quarterly growth rates that is pathetic. (Maybe it’s time for new management – David Wenig just isn’t getting the job done.)