Ebay's stock shrinks as guidance warns of tighter spending

The news: Shares in Ebay have slumped in after-market trading after the online marketplace revised down its fourth-quarter guidance amid fears of weak consumer spending.

The numbers: Ebay's stock price fell 6.4% after the bell to USD36.16 despite the company posting a 5% uplift in revenues to USD2.5 billion ($3.89 billion). It revised its fourth-quarter revenue guidance to between USD2.47 billion and $2.53 billion, from estimates of USD2.6 billion, Reuters reports.

The context: While online sales are expected get a boost from the holiday season and late November sales, competition from rivals like Amazon remains fierce in a tight market where high inflation and interest rates are putting pressure on consumer spending.