EBay expects revenue growth of up to 6% in 2023 and launches digital wallet | Investment News

(Reuters) – E-commerce company eBay Inc said on Thursday it expects revenue growth of between 5% and 6% in fiscal 2023 and launched its first digital wallet.

Analysts polled by Refinitiv estimated 2023 revenue at $10.95 billion, indicating growth of 5.5%.

EBay saw strong demand from the online shopping boom last year during the COVID-19 pandemic, but is now scrambling to maintain momentum as people return to normal life.

Additionally, analysts said eBay, which is still in the early stages of product innovation, faces stiff competition from rivals such as Amazon.com Inc.

EBay said the digital wallet would allow customers to use proceeds from their sales to easily purchase their next item or pay their selling fees.

“We see incredibly compelling growth potential in this market,” Chief Executive Jamie Iannone said.

The company also launched eBay Vault, a digital marketplace and storage facility for trading cards and collectibles, which is expected to launch in the United States in the next quarter.

Shares of the company fell 1.1% to $52.5 in extended trading.

The company expects adjusted earnings to grow about 10% in 2023, it said on its Investor Day. For fiscal 2024, eBay expects revenue growth of between 7% and 8% and adjusted earnings of around 15%.

Last month, eBay forecast dismal first-quarter results as it grapples with falling online demand, fierce competition and global supply chain disruptions.

(Reporting by Chavi Mehta and Akash Sriram in Bengaluru; Editing by Amy Caren Daniel)

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