Online retailer eBay is set to slip behind e-commerce rivals such as Amazon and Google as its core business continues to lag with disappointing growth, according to ITG analyst Steve Weinstein.
The prediction comes even though the online auction house is expected to beat revenue expectations for the fourth quarter, thanks largely to StubHub – eBay’s online ticket marketplace
Weinstein wrote: “We continue to view core eBay growth as disappointing when compared to other e-commerce companies. We believe the sustained underperformance reflects confused brand identity and an inability to provide a compelling experience for buyers and sellers.”
Fleshing out his rationale Weinstein estimates that Ebay’s marketplace revenue will increase by just 0.4 per cent year on year in the fourth quarter to $1.835bn as consumers relegate it to bargain hunters.