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eBay (EBAY)
NASDAQ:EBAY
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eBay
(NASDAQ:EBAY)73Outperform
Positive Factors
AI Innovation
The company continues to leverage AI to innovate and penetrate the fashion category, enhancing its competitive edge.
Product Optimization
EBAY's results indicate continued progress in focus categories and product optimization for UK's C2C business.
Negative Factors
Economic Uncertainty
Guidance came in light due to uncertainty in European economy and tariffs, and the temporary shift in monetization of UK's C2C unit.
eBay (EBAY) vs. S&P 500 (SPY)
Market Cap
$31.07B
Dividend Yield1.65%
Average Volume (3M)4.77M
Price to Earnings (P/E)16.9
Beta (1Y)0.78
Revenue Growth2.79%
EPS Growth-23.30%
CountryUS
Employees12,300
SectorConsumer Cyclical
Sector Strength53
IndustryRetail - Discretionary
Share Statistics
EPS (TTM)3.97
Shares Outstanding466,000,000
10 Day Avg. Volume7,273,961
30 Day Avg. Volume4,774,204
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.96
Price to Cash Flow (P/CF)11.20
P/FCF Ratio13.60
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$66.17Price Target Upside-0.75% Downside
Rating ConsensusHold
Number of Analyst Covering26
eBay Business Overview & Revenue Model
Company DescriptioneBay Inc.is one of the world’s largest online marketplaces, connecting buyers and sellers worldwide. Its marketplace platform allows visitors to browse through and buy products listed for sale or auction. The company has business operations across 190 countries.
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 Financial Statement Overview
Summary
eBay's financial statements reflect stability and strong cash flow management, though there are concerns about declining profitability as seen in the net profit margin and ROE. The balance sheet is moderately leveraged, with sufficient equity to support operations. Despite slow revenue growth, the company's efficient operations and cash flow resilience position it well for future growth.Income Statement
eBay's TTM (Trailing-Twelve-Months) income statement shows a stable gross profit margin of 72.0% and an EBIT margin of 22.5%, indicating efficient cost management. However, the net profit margin has decreased to 19.2% from the previous year's 27.4%, primarily due to a significant decrease in net income. The revenue growth rate is modest at 1.7%, indicating slow but steady growth.75
Positive
Balance Sheet
The balance sheet reveals a debt-to-equity ratio of 1.50, which is average for the industry, suggesting moderate leverage. The return on equity (ROE) has dropped to 38.3% from 43.3% a year earlier, reflecting a decrease in profitability for shareholders. The equity ratio stands at 26.6%, indicating a moderate level of financial stability.70
Positive
Cash Flow
Free cash flow remains strong, with a slight decrease compared to the previous year. The operating cash flow to net income ratio is high at 1.22, suggesting robust cash generation relative to net income. The free cash flow to net income ratio also indicates healthy cash flow management.78
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 10.28B | 10.11B | 9.79B | 10.42B | 10.27B | Gross Profit |
| 7.40B | 7.28B | 7.12B | 7.77B | 7.80B | EBIT |
| 2.32B | 1.94B | 2.35B | 5.29B | 2.71B | EBITDA |
| 2.86B | 4.37B | -924.00M | 1.16B | 4.24B | Net Income Common Stockholders |
| 1.98B | 2.77B | -1.27B | 252.00M | 2.54B |
| 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
66.67
Price Trends
66.10
Positive
64.60
Positive
60.39
Positive
Market Momentum
<0.01
Positive
47.94
Neutral
39.70
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 66.67 is below the 20-day moving average (MA) of 68.08, above the 50-day MA of 66.10, and above the 200-day MA of 60.39, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 47.94 is Neutral, neither overbought nor oversold. The STOCH value of 39.70 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 29 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
83 Outperform | $312.51B | 18.26 | 12.08% | 0.75% | 4.28% | 28.42% | |
82 Outperform | $2.16T | 36.91 | 20.72% | ― | 10.99% | 91.61% | |
76 Outperform | $104.43B | 54.65 | 43.92% | ― | 43.56% | 91.72% | |
73 Outperform | $31.07B | 16.91 | 38.29% | 1.65% | 2.79% | -23.30% | |
63 Neutral | $5.25B | 20.86 | -39.97% | ― | 2.18% | 5.77% | |
60 Neutral | $13.01B | 10.45 | 0.79% | 3.53% | 1.60% | -22.47% |
* Consumer Cyclical Sector Average
Performance Comparison
EBAY
eBay
66.67
17.53
35.67%
AMZN
Amazon
203.80
29.68
17.05%
MELI
Mercadolibre
2,059.87
532.58
34.87%
BABA
Alibaba
129.85
59.29
84.03%
ETSY
Etsy
49.46
-19.09
-27.85%
SHOP
Shopify
101.73
28.26
38.46%
eBay Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -3.57% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflects a positive sentiment with notable achievements in GMV growth, innovation in AI, successful strategic initiatives, and strong shareholder returns. However, challenges remain with macroeconomic conditions in key markets and impacts on take rates and growth due to foreign exchange and calendar effects.Highlights
Positive Growth in Gross Merchandise Volume
eBay ended 2024 with three consecutive quarters of positive GMV growth, increasing by more than 1% to $75 billion for the full year.
Focus Category Volume Growth
Focus category volume grew 5% in 2024, outpacing core categories and showing resilience despite difficult comparisons.
Innovation in AI and Technology
Introduced proprietary large language models, enhancing productivity and search efficacy. Sellers and buyers are utilizing AI-powered tools such as Magical Listing and Explore.
Record Shareholder Returns
Non-GAAP earnings per share grew by 15% to $4.88, with nearly $3.7 billion returned to shareholders through repurchases and dividends.
Successful U.K. C2C Overhaul
The overhaul led to improved GMV trends in the U.K. market, showing a double-digit improvement in C2C GMV growth.
Strategic Acquisitions and Partnerships
Acquired Caramel for enhanced vehicle transactions and established partnerships with Klarna and Meta for broader market reach.
Lowlights
Macroeconomic Challenges in Key Markets
Underlying macro trends in the U.K. and Germany remain challenging, affecting overall demand and ecommerce growth.
Decreased Take Rate
The take rate decreased by 40 basis points year-over-year, affected by the U.K. C2C initiative and foreign exchange impacts.
Forex and Calendar Headwinds
Foreign exchange posed a headwind to growth, with GMV impacted in Q1 by the leap year and Easter timing.
Company Guidance
In the recent earnings call, eBay provided guidance for the first quarter of 2025, projecting gross merchandise volume (GMV) between $18.3 billion and $18.6 billion, with a year-over-year organic FX-neutral growth range from flat to 1%. Revenue is expected to be between $2.52 billion and $2.56 billion, implying a negative 1% to positive 1% FX-neutral growth. eBay anticipates non-GAAP operating margins to be between 29% and 29.4%, with non-GAAP earnings per share ranging from $1.32 to $1.36, representing a 6% to 9% increase year-over-year. For the full year, eBay expects low-single-digit GMV growth on an FX-neutral basis, with revenue growth slightly higher than GMV. Non-GAAP operating income growth is expected to align with revenue growth, while non-GAAP earnings per share is anticipated to grow in the high single digits.eBay Corporate Events
Stock Buyback
eBay Expands Stock Repurchase Program by $3 Billion
Positive
Dec 16, 2024
eBay’s Board of Directors has authorized an additional $3.0 billion for their stock repurchase program, complementing the remaining previously authorized amounts. The program, which has no expiration date, can be adjusted or terminated at any discretion and depends on factors such as market conditions, regulatory requirements, and cash management strategies.
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.