Online retailer eBay Inc (EBAY) - Get Report  reported a 94% drop in GAAP net income from the year-ago period. 

Shares of eBay were trading down about 3% to $36 in after-hours trading. The San Jose, Calif. company reported earnings after Thursday's closing bell.

For the second quarter, eBay posted GAAP net income from continuing operations of $27 million, or 2 cents per diluted share, vs. $437 million, or 38 cents per share in the year ago period. In the earnings report, eBay said the GAAP net income was hurt by a non-cash income tax charge of $311 million that was related to its "ongoing realignment of its legal structure."

Meanwhile, non-GAAP earnings were in-line with expectations, coming in at 45 cents per diluted share and non-GAAP revenue beat expectations at $2.33 billion, vs. $2.31 billion. In the year-ago period, eBay earned 43 cents per share on revenue of $2.23 billion. For the third-quarter, eBay forecast earnings of 46 cents to 48 cents per share, vs. analyst expectations for 48 cents per share.

Total Gross Merchandise Volume (GMV) came in at $21.5 billion vs. $20.5 billion in the year ago period. In the second quarter, eBay added two million active buyers across its platforms, for a total of 171 million global active buyers. eBay also announced that its board has approved an additional $3 billion stock buyback program.

"In Q2, eBay delivered strong top and bottom line financial results, led by Marketplace acceleration," said eBay CEO Devin Wenig. "During the past two years, we have made significant progress to modernize eBay and drive growth by improving the customer experience, creating a product catalog that covers more than half of our inventory, and sharpening the eBay brand. We are on track and focused on creating an even stronger eBay for years to come."

eBay has been upping its marketing and sales efforts lately to stay competitive with other e-commerce giants like Amazon.com (AMZN) - Get Report and Walmart (WMT) - Get Report . In June, eBay announced a new Price Match Guarantee program for over 50,000 items in the U.S. on its site, promising that it will offer the same price or a lower price on items from its competitors, including Amazon.com, Walmart, Best Buy (BBY) - Get Report , Home Depot (HD) - Get Report , Target (TGT) - Get Report , Sears (SHLD) , Jet.com (owned by Walmart) and Wayfair  (W) - Get Report . In the recent quarterly report, eBay had expanded the program to 80,000 deals worldwide. 

The stock has 19 "hold" ratings, 11 "buy" ratings, and one "sell" rating from the analysts covering eBay that were surveyed by FactSet.