Yahoo Finance Live anchors discuss eBay's quarterly earnings.

Video Transcript

BRIAN SOZZI: All right, let's get back on tech though. Despite better than expected earnings reports for both Etsy and eBay, the e-commerce sites, both gave weak guidance for the current quarter. Those stocks are under pressure really big time here in the premarket. And I want to start with eBay, and I debated really-- I have debated probably for the past eight hours internally if I wanted to say this about eBay's quarter, but I'll just say it anyway. I think their quarter sucked, and their earnings call was also very, very alarming.

You have a management team here that is not delivering up to expectations. They spent about 30 minutes on that call last night talking about how their business and trading cards was going through the roof. Who cares about trading cards. Secondarily-- well, I hear you, but secondarily, and then after they're talking about trading card business, they're talking about they're one of the best places to get car parts. Who cares?

Talk to me about how you're trying to transform? This also ran of a company that now trades at a multiple to forward earnings of about 12 times, not even like a tech company. Disastrous quarter from eBay, worrying outlook from the company here, really theoretically there's no reason to even be involved from an investor standpoint in the stock.

- Spoken like somebody who's been outbid at the last second by a bot on eBay.

BRIAN SOZZI: Yes.

- | mean, you didn't like the eBay Vault, 31,000 square foot secure storage facility? I mean--

BRIAN SOZZI: Terrible.

- These major investments, of course, they are long term decisions that the company has made. But when does that pay off immediately? I mean, we're looking at revenue down 6% on an as reported basis, down 5% FX neutral, and then additionally gross merchandise volume $19.4 billion down 20% during the quarter.

And so all of this considered for eBay, some of the investments need to start paying off quicker. However, you're still looking at an environment where this consumer, especially in resale even or even if you've got the power sellers, they're looking towards the other platforms. But for the power seller side, you're still going to run into the issues that Etsy ran into in this last quarter too.