EBay's high-flying stock price declined in after-hours trading last night.

This comes after the e-commerce bellwether gave a cautious outlook for the current quarter due in part to the lacklustre European economy.

The company grew its earnings and revenue in the first quarter, as shoppers continued to flock to eBay.com and other sites and mobile apps, to buy everything from cars to handbags to wedding rings.

EBay's payments unit, PayPal, continued its fast-paced growth and expansion beyond the web to brick-and-mortar stores.

But eBay's revenue, along with its guidance for the current quarter, fell shy of Wall Street's expectations.

The California-based company's stock dropped by 3%, to $54.40 in after-hours trading. The stock closed down 91 cents at $56.10 in the regular session amid a broad market decline. But that is up 10% since the start of the year and more than 55% from a year ago.

But there may be better days ahead. The company's 2013 earnings guidance surpassed and revenue outlook bracketed Wall Street's expectations as the company thinks the second half of the year will be stronger than the first.

EBay also recently issued an upbeat long-term forecast, saying it expects revenue to hit as much as $23.5 billion in 2015, up from 67% from $14.1 billion in 2012.

"We had a strong first quarter, with accelerating user growth across both Marketplaces and PayPal, and with GSI enabling their retail clients to grow faster than e-commerce," said President and chief executive John Donahoe in a statement. GSI provides e-commerce and online marketing services to companies.

EBay said revenue at PayPal grew 18% to $1.55 billion and ended the quarter with 128 million registered accounts, up 16% from a year earlier. Its marketplaces unit, which includes eBay.com, grew revenue by 13% to $1.96 billion and ended the quarter with 116 million active users, an increase of 13%.

But some analysts are worried about short-term challenges EBay faces. They believe EBay is confronted with tight retail inventories and potential pressure on PayPal's profit margins from credit card companies, if they start charging fees for using the payments service.

EBay said last night that it earned $677m, or 51 cents per share, in the three months from January to March. That was up 19% from $570m, or 44 cents per share, the same time last year.

Revenue grew 14% to $3.75 billion, slightly below Wall Street expectations. Analysts polled by FactSet were looking for $3.77 billion.