TD Cowen analyst John Blackledge has maintained their neutral stance on EBAY stock, giving a Hold rating on July 29.
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John Blackledge has given his Hold rating due to a combination of factors that reflect both positive performance and potential challenges for eBay. The company’s second-quarter results were strong, with growth in Gross Merchandise Volume (GMV), revenue, and earnings per share surpassing expectations. This was largely driven by the success in Focus Categories, which saw a significant year-over-year increase. However, despite these positive outcomes, there are concerns about the operating income margin, which fell slightly short of estimates due to increasing headwinds and reinvestment strategies.
Looking ahead to the third quarter, eBay’s GMV guidance is optimistic, exceeding both internal and consensus estimates. Nonetheless, management has expressed caution due to uncertainties in the macroeconomic environment, including the impact of tariffs and changes in de minimis exemptions. Additionally, while active buyer numbers have shown consistent growth, the operating income margin is expected to face pressure from various factors, including managed shipping and M&A-related expenses. These mixed signals contribute to the decision to maintain a Hold rating, balancing the company’s current strengths with potential risks.
According to TipRanks, Blackledge is a 5-star analyst with an average return of 13.2% and a 59.76% success rate. Blackledge covers the Communication Services sector, focusing on stocks such as Netflix, Meta Platforms, and Alphabet Class C.
In another report released on July 29, Stifel Nicolaus also maintained a Hold rating on the stock with a $68.00 price target.