Online marketplace operator eBay Inc. (EBAY) in San Jose, Calif., wants to be the marketplace for Gen-Z and millennials and is studying the possibility of adding cryptocurrencies as a means of payment. EBAY already accepts NFTs and might also embrace crypto payments soon. “We’re not accepting crypto currently,” CEO Jamie Iannone said. But “on March 10, we’re going to go deeper on all of these things, payments, advertising, our focus categories.” With gen Z as the priority, this move could help expand its customer base.
However, the company is currently grappling with waning online demand, stiff competition, and supply chain disruptions. The company had benefited from heightened online spending during the COVID-19 pandemic, but with declining infection rates and people returning to brick-and-mortar shopping, the company is seeing a decline in active users. Furthermore, the company expects its margins to be pressured as it scales its investments. EBAY’s active buyers decreased by l 9% to 147 million in its fiscal fourth quarter, while its gross merchandise volume (GMV), the value of all goods sold on the platform, fell 10.4% from last year to $20.70 billion. In addition, the company provided disappointing first-quarter guidance, which led to a sharp decline in its share price. The company expects adjusted EPS in the range of $1.01 to $1.05 and revenue of $2.43 billion to $2.48 billion; both estimates are below Wall Street’s expectations. The company’s full-year guidance also came in below expectations.
