Shares of eBay (NASDAQ: EBAY) tanked more than 10% in premarket trading Thursday after the e-commerce giant missed guidance consensus estimates.

The company reported a fourth-quarter adjusted EPS of $1.05, compared to the consensus estimates of 99 cents per share. Net revenue came in at $2.61 billion in the quarter, up 5.4% YOY and in line with the consensus estimates of $2.61 billion.

"Rounding out a very strong year, I'm proud of our team for delivering yet another solid quarter. By investing in our strategy to drive sustainable growth, we increased customer satisfaction, improved the seller and buyer experience, and returned value to our shareholders," said Jamie Iannone, CEO of eBay.

Gross merchandise volume stood at $20.73 billion in the period, down 10% from the year-ago period, while U.S. gross merchandise volume totaled $9.72 billion, down 2.5% YOY. International gross merchandise volume was reported at $11 billion, down 16% YOY.

The number of active buyers was reported at 147 million in the quarter, missing the consensus estimates of 155.5 million. Active sellers in the quarter totaled 17 million.

For the current quarter, eBay expects adjusted EPS from continuing operations to range between $1.01 and $1.05, below the consensus estimates of $1.07 per share. The company forecasts net revenue in the range of $2.43 billion to $2.48 billion in the period, well below the analyst consensus of $2.61 billion.

Mizuho analyst James Lee reiterated a Neutral rating and lowered the price target to $60.00 per share from the prior $65.00.

“While encouraged by continued product improvements in 20% of GMV, we believe the transition of its entire product categories could take time to play out. Due to increasing investments in focused categories, we are reducing our FY23 EBITDA by 5% to $4.3bn,” Lee said in a client note.

Raymond James analyst Aaron Kessler also maintained a Market Perform rating on EBAY stock. The analyst sees shared fairly valued “given our expectation for ~mid single digit long-term revenue growth.”

“​​eBay reported a generally in-line 4Q with continued momentum in focus categories and continued traction against Payments and Advertising. That said, eBay guided 2022 GMV modestly below the Street given continued tough comps and international headwinds. We remain positive on eBay’s improved execution though tough GMV comps in 1H22 will likely limit upside from current levels and we expect shares to remain range-bound near-term.”

By Senad Karaahmetovic | [email protected]