eBay shares plunge as upsetting profit forecast unfolds

eBay, The e-commerce company, issued a warning to Wall Street on Wednesday regarding its profit this quarter that may have plunged below analysts’ estimates as the company had invested in marketing and upgrading its website. Consequently, its shares plummeted by more than 5 percent in late trade.

eBay summarized its profit forecast for all 2017, calculating $1.99 to $2.01 a share. Gross merchandise volume gained 8 percent to $21.7 billion in third quarter – the fastest growth in three years. Revenue rose 8.7 percent to $2.41 billion in the quarter, surpassing past analysts’ estimate of $2.37 billion. Net income increased 27 percent to $523 million.

In spite of this clear growth, eBay’s operating profit margin was slightly reduced to 24 percent in this quarter compared to 24.4 percent in the same quarter last year.

Bitcoin conquers obstacles

Bitcoin seems to have had a rough September, but it may be its turning point as the currency is showing resilience in face of all its trials. Setbacks caused its price to plunge below $3,000.

While governments are permitting the sector to flourish unchecked, professor of economist and public policy expert at Harvard University, Kenneth Rogoff, thinks that digital currencies will most likely be regulated in the near future. One example where this scenario could happen is in Japan. The country made amendments to its legislation accepting cryptocurrencies such as bitcoin as a form of legal payment.

Russia is planning to kick-start its own national cryptocurrency, “CryptoRuble”. Acknowledging the market’s significant risks, Russia plans to counter the hazards by regulating the mining and supply of its cryptocurrencies.

Dubai is also in the loop revealing that it will be producing its own blockchain based cryptocurrency called emCash.

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