Analyst John Colantuoni of Jefferies maintained a Sell rating on eBay (EBAY – Research Report), with a price target of $50.00.
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.