Etsy and eBay reported better-than-expected first-quarter results after the bell on Wednesday, but the companies gave weak guidance for the current quarter that suggests the e-commerce sector is cooling off after a pandemic-fueled boost.
Shares of eBay fell more than 6% in extended trading, while Etsy’s stock plunged as much as 12%.
Here’s how Etsy did, compared with expectations of analysts surveyed by Refinitiv:
Etsy and eBay are contending with rising concerns that e-commerce companies won’t be able to sustain the high-flying growth they enjoyed during the coronavirus pandemic. During the pandemic, e-commerce companies across the board picked up business, which benefited their growth rates and lifted their stock prices.
After two years of outsized growth, investors have been gearing up for a slowdown, especially as the economy continues to reopen and consumers return to stores.