Analyst John Colantuoni of Jefferies maintained a Sell rating on eBay (EBAY – Research Report), with a price target of $50.00.
Meet Your ETF AI Analyst
- Discover how TipRanks' ETF AI Analyst can help you make smarter investment decisions
- Explore ETFs TipRanks' users love and see what insights the ETF AI Analyst reveals about the ones you follow.
John Colantuoni has given his Sell rating due to a combination of factors, primarily focusing on eBay’s growth prospects and market positioning. Despite eBay delivering a modest upside in the first quarter, the company’s growth in gross merchandise volume (GMV) and earnings before interest, taxes, depreciation, and amortization (EBITDA) is expected to be below the industry average. This is particularly concerning given the competitive landscape and the company’s reliance on discretionary spending, which may be impacted by broader economic conditions.
Moreover, the slowdown in advertising growth poses a significant risk to eBay’s future performance. The company’s advertising growth has moderated, and the outlook suggests further deceleration, which could hinder eBay’s ability to maintain its revenue growth. Additionally, while eBay’s performance in the U.S. has been resilient, there are concerns about the sustainability of this growth, especially with potential tariff impacts and a softening consumer environment. These factors contribute to the assessment that eBay’s current market valuation may not be sustainable, leading to the Sell rating.