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Ebay Inc (EBAY)
:EBAY
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eBay
(NASDAQ:EBAY)
78Outperform
Positive Factors
Platform Resilience
EBay is building a more resilient platform through recent fee optimizations, improvements in discoverability, and investments in AI to drive personalization and reduce listings friction.
Strategic Goals
EBay remains a hiding spot in tariff-ridden eCommerce, executing well against its broader strategic goals.
Negative Factors
EBITDA Growth
EBAY’s peer average multiple appears unsustainable given the outlook for below-average EBITDA growth.
Growth Rates
EBay's growth trails the broader eCommerce sector, impacting its competitive positioning.
eBay (EBAY) vs. S&P 500 (SPY)
Market Cap
$31.62B
Dividend Yield1.63%
Average Volume (3M)6.32M
Price to Earnings (P/E)17.4
Beta (1Y)0.60
Revenue Growth2.12%
EPS Growth-15.61%
CountryUS
Employees11,500
SectorConsumer Cyclical
Sector Strength62
IndustrySpecialty Retail
Share Statistics
EPS (TTM)4.18
Shares Outstanding466,000,000
10 Day Avg. Volume6,350,558
30 Day Avg. Volume6,316,272
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.00
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit4.28
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$68.52Price Target Upside-0.12% Downside
Rating ConsensusHold
Number of Analyst Covering28
eBay Business Overview & Revenue Model
Company DescriptioneBay Inc. is a global commerce leader that connects millions of buyers and sellers around the world. The company operates in the e-commerce sector, providing an online marketplace where individuals and businesses can buy and sell a wide variety of goods and services. eBay's platform is accessible through its website and mobile apps, offering a dynamic and interactive shopping experience with a diverse range of products across numerous categories, including electronics, fashion, home and garden, and collectibles.
How the Company Makes MoneyeBay primarily makes money through transaction fees and advertising. The company charges sellers a listing fee to post items for sale, as well as a final value fee, which is a percentage of the sale price when an item is sold. These fees constitute the bulk of eBay's revenue. Additionally, eBay generates revenue from its advertising services, where sellers can pay for promoted listings to increase their visibility on the platform. eBay also earns from subscription services and managed payments, enhancing its revenue by providing value-added services to sellers. Key partnerships with payment processors and logistics providers further support eBay's revenue generation by facilitating smooth transactions and shipping solutions.
eBay Key Performance Indicators (KPIs)
Any
Gross Merchandise Volume by Geography
Shows the total value of goods sold through eBay across different regions, highlighting where the platform is most popular and where it might expand. This can indicate market dominance or vulnerability to regional economic shifts.
Shows the total value of goods sold through eBay across different regions, highlighting where the platform is most popular and where it might expand. This can indicate market dominance or vulnerability to regional economic shifts.
Data provided by:
Main Street Data
Main Street DataeBay Financial Statement Overview
Summary
eBay exhibits strong financial health with consistent profitability, efficient cash generation, and a balanced capital structure. Despite modest revenue growth, the company manages its margins and cash flows effectively, providing stability and potential for sustainable growth.Income Statement
eBay's income statement shows a strong performance with a solid gross profit margin of 71.8% and a net profit margin of 19.8% for the TTM (Trailing-Twelve-Months). Despite a modest revenue growth rate of 0.28%, the company maintains healthy profitability with an EBIT margin of 22.3% and an EBITDA margin of 27.1%. These results highlight eBay's ability to generate profits efficiently, although the revenue growth trajectory is relatively flat.80
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio of 1.42, indicating a balanced approach to leveraging. With a return on equity (ROE) of 41.2% for the TTM, eBay demonstrates strong profitability relative to shareholder investment. The equity ratio stands at 26.1%, suggesting a reasonable proportion of assets financed by equity, which provides a stable financial foundation despite potential risks from leverage.75
Positive
Cash Flow
eBay's cash flow statement is robust, with a free cash flow growth rate of 8.78% for the TTM, signaling effective cash management. The operating cash flow to net income ratio of 1.27 and a free cash flow to net income ratio of 1.04 illustrate strong cash generation relative to profits, underpinning the company's ability to fund operations and investments from cash flows.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.28B | 10.11B | 9.79B | 10.42B | 8.89B | Gross Profit |
| 7.40B | 7.28B | 7.12B | 7.77B | 7.10B | EBIT |
| 2.32B | 1.94B | 2.35B | 2.92B | 2.64B | EBITDA |
| 2.86B | 4.37B | -924.00M | 1.17B | 4.23B | Net Income Common Stockholders |
| 1.98B | 2.77B | -1.27B | 13.61B | 5.67B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 5.89B | 9.02B | 7.47B | 7.32B | 3.83B | Total Assets |
| 19.36B | 21.62B | 20.85B | 26.63B | 19.31B | Total Debt |
| 7.86B | 8.23B | 9.29B | 9.28B | 8.14B | Net Debt |
| 5.43B | 6.24B | 7.13B | 7.90B | 6.71B | Total Liabilities |
| 14.21B | 15.22B | 15.70B | 16.85B | 15.75B | Stockholders Equity |
| 5.16B | 6.40B | 5.15B | 9.78B | 3.56B |
| Cash Flow | Free Cash Flow | |||
| 1.96B | 1.97B | 1.80B | 2.21B | 1.93B | Operating Cash Flow |
| 2.41B | 2.43B | 2.25B | 2.66B | 2.42B | Investing Cash Flow |
| 2.21B | 240.00M | 2.46B | 3.66B | 3.79B | Financing Cash Flow |
| -3.81B | -2.45B | -3.79B | -6.53B | -5.69B |
eBay Technical Analysis
Positive
68.60
Price Trends
66.19
Positive
65.71
Positive
62.96
Positive
Market Momentum
0.65
Negative
58.68
Neutral
67.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBAY, the sentiment is Positive. The current price of 68.6 is above the 20-day moving average (MA) of 65.39, above the 50-day MA of 66.19, and above the 200-day MA of 62.96, indicating a bullish trend. The MACD of 0.65 indicates Negative momentum. The RSI at 58.68 is Neutral, neither overbought nor oversold. The STOCH value of 67.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBAY.
eBay Risk Analysis
eBay disclosed 28 risk factors in its most recent earnings report. eBay reported the most risks in the “Legal & Regulatory” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
eBay Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $300.72B | 17.68 | 11.97% | 0.81% | 4.28% | 28.42% | |
78 Outperform | $31.62B | 17.40 | 36.48% | 1.63% | 2.12% | -15.61% | |
78 Outperform | $101.24B | 52.98 | 51.50% | ― | 43.56% | 91.72% | |
70 Outperform | $154.42B | 10.51 | 45.06% | ― | 57.51% | 82.28% | |
63 Neutral | $42.61B | 283.11 | 3.76% | ― | 24.14% | -88.77% | |
62 Neutral | $4.43B | 17.93 | -39.97% | ― | 2.18% | -32.87% | |
61 Neutral | $6.66B | 11.71 | 2.96% | 4.01% | 2.64% | -20.91% |
* Consumer Cyclical Sector Average
Performance Comparison
EBAY
eBay
68.60
20.12
41.50%
MELI
Mercadolibre
2,280.69
626.84
37.90%
BABA
Alibaba
125.76
45.92
57.52%
ETSY
Etsy
44.30
-18.16
-29.07%
PDD
PDD Holdings
110.92
-27.72
-19.99%
CPNG
Coupang
24.10
0.76
3.26%
eBay Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: 0.65%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong financial performance with growth in GMV, revenue, and non-GAAP earnings, driven by focus categories and innovative initiatives in areas like trading cards and fashion. However, challenges remain with trade policy uncertainties and pressures from weaker international markets. Despite these challenges, the overall sentiment is positive due to significant achievements and ongoing strategic initiatives.Q1-2025 Updates
Positive Updates
Positive GMV and Revenue Growth
Gross merchandise volume grew nearly 2% to approximately $18.8 billion, marking the fourth consecutive quarter of positive GMV growth. Revenue increased over 1% to $2.58 billion.
Strong Non-GAAP Earnings
Non-GAAP earnings per share grew by 10% to $1.38. The company also returned approximately $760 million of capital to shareholders through repurchases and cash dividends.
Focus Category GMV Growth
Focus category GMV grew by over 6% in Q1, with collectibles being the largest contributor to growth for the second straight quarter.
Growth in First-Party Advertising
First-party advertising revenue grew 14%, with active Promoted Listings increasing and making up over $1.1 billion of the more than $2.3 billion total listings on eBay.
Innovation in Trading Cards
eBay's strategic partnership with collectors and PSA continues to yield benefits, with innovations such as grading services and seamless integrations enhancing the trading card marketplace.
Fashion Category Improvements
eBay launched new AI-powered shopping experiences and expanded inventory coverage for authenticity guarantee in the fashion category, generating over $10 billion of GMV annually.
Geo-Specific Initiatives Success
Significant improvements in the U.K. consumer-to-consumer (C2C) market, with initiatives materially improving GMV trends and outperforming internal expectations.
Negative Updates
Challenges from Tariffs and Trade Policy
Tariffs and changes to customer requirements in the U.S. have created significant uncertainty for small businesses, impacting cross-border trade and consumer confidence.
Depreciation and Margin Pressures
Non-GAAP gross margin declined by over 0.5 point due to headwinds from depreciation expense and traffic acquisition costs related to promoted offsite ads.
Weaker International Markets
The macro environment in international markets, particularly in Germany and the U.K., has been weaker compared to the U.S., impacting overall growth.
Company Guidance
In the eBay First Quarter 2025 Earnings Call, the company reported that their Q1 results surpassed expectations across key financial metrics, with gross merchandise volume (GMV) increasing by nearly 2% to approximately $18.8 billion, marking the fourth consecutive quarter of positive GMV growth. Revenue grew over 1% to $2.58 billion, while non-GAAP earnings per share rose by 10% to $1.38. eBay also returned approximately $760 million to shareholders through repurchases and cash dividends. Focus category GMV, which includes areas such as collectibles, grew by over 6%, contributing more than one-third of total volume globally. Innovations like AI-powered shopping experiences and strategic partnerships have played a significant role in driving growth. The company also discussed the impacts of tariffs and trade policy changes, emphasizing their efforts to help sellers and buyers navigate these challenges, including the use of their SpeedPAK shipping program. Additionally, eBay announced changes to its leadership team, with Steve Priest stepping down as CFO and Peggy Alford taking over the role.eBay Corporate Events
Executive/Board ChangesBusiness Operations and StrategyFinancial Disclosures
eBay Announces Leadership Changes and New CFO
Positive
Apr 30, 2025
On April 30, 2025, eBay announced several leadership changes, including the appointment of Peggy Alford as the new Chief Financial Officer, effective May 12, 2025. Alford brings extensive experience from her previous roles at PayPal and the Chan Zuckerberg Initiative. Additionally, eBay reported its first-quarter 2025 financial results, highlighting a revenue of $2.6 billion and a gross merchandise volume of $18.8 billion, both up by 1% on an as-reported basis. The company also introduced new AI-powered features and expanded services, such as the Authenticity Guarantee in Japan, contributing to its strategic growth and innovation efforts.
Spark’s Take on EBAY Stock
According to Spark, TipRanks’ AI Analyst, EBAY is a Outperform.
eBay’s overall stock score is supported by strong cash flow management and effective strategic initiatives, despite some profitability concerns and moderate leverage. The technical indicators suggest a potential near-term rebound, while the valuation is fair with a decent dividend yield. The positive sentiment from the earnings call and the expanded stock repurchase program further bolster the stock’s outlook.
To see Spark’s full report on EBAY stock, click here.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.