eBay Inc. (NASDAQ: EBAY) saw its shares plummet 9.24% in pre-market trading on Thursday, following the release of its third-quarter earnings report. Despite beating analyst expectations for Q3, the e-commerce giant's stock took a hit due to disappointing fourth-quarter guidance and growing concerns over recent regulatory changes affecting cross-border trade.

For the third quarter, eBay reported non-GAAP earnings of $1.36 per diluted share, surpassing the FactSet analyst consensus of $1.33. Revenue also exceeded expectations, coming in at $2.82 billion, up 9% year-over-year. The company's gross merchandise volume (GMV) reached $20.1 billion, outperforming analyst projections of $19.5 billion. However, the positive Q3 results were overshadowed by a cautious outlook for Q4.

eBay's fourth-quarter guidance fell short of Wall Street expectations, with the company forecasting diluted non-GAAP earnings per share between $1.31 and $1.36, below the analyst consensus of $1.38. Adding to investor concerns, eBay's CFO reported a deceleration in year-over-year volume growth starting in September in key markets importing into the US. This slowdown was attributed to the removal of the de minimis exemption, a regulatory change that is expected to have a full quarter impact in Q4, compared to just a single month in Q3. The company warned that this change could put pressure on its near-term performance, particularly affecting small businesses and consumer confidence in imported goods.