CNBC's Jim Cramer said Wednesday that eBay's (EBAY) business outlook leaves much to be desired and bolsters the investment case for other retailers, such as Costco Wholesale (COST).
After the close Tuesday, eBay issued light fourth-quarter guidance as management warned about softening consumer demand beginning in September and extending into the current sales period, particularly in Europe. U.S. shoppers also are looking for more value, management said.
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The commentary from eBay executives painted a picture that says, "Oh man, I'd rather be in Costco. I'd rather in Amazon. I'd rather be in Walmart," Cramer said on "Squawk on the Street." Cramer's Charitable Trust, the portfolio used by the CNBC Investing Club, owns shares of Costco and Amazon (AMZN).
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Shares of eBay fell nearly 6% in early trading Wednesday, to around $38.40 each. Including Wednesday's move, the stock has declined about 7% year to date.
"The eBay file [is] done. I want you to stick a fork in it," Cramer said.
Here's a full list of the stocks in Jim's Charitable Trust, the portfolio used by the CNBC Investing Club.
