eBay (EBAY) AI Stock Analysis

• Market Cap: $45.34B
• Dividend Yield: 1.14%
• Average Volume (3M): 6.26M
• Price to Earnings (P/E): 21.9
• Beta (1Y): 0.47
• Revenue Growth: 3.05%
• EPS Growth: -10.82%
• Country: US
• Employees: 11,500
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Specialty Retail
• EPS (TTM): 1.37
• Shares Outstanding: 457,000,000
• 10 Day Avg. Volume: 5,835,353
• 30 Day Avg. Volume: 6,256,829
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 5.03
• Enterprise Value/Ebitda: 12.52
• 1Y Price Target: $88.80
• Price Target Upside: -9.89% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27

• Rating: 77 Outperform
• Price Target: $112.00 ▲(13.65% Upside)

eBay's strong earnings performance and strategic initiatives in AI and advertising are key strengths, contributing to a high earnings call score. However, high leverage and potential overvaluation are risks that moderate the overall score.

Positive Factors

Growth in Focus Categories

Focus Categories grew 10% year-over-year, showing strong performance in specific segments.

Platform Enhancements

EBay announced new tools to improve the selling experience on its platform during OPEN25, including an AI Assistant for messaging customers and Offers embedded directly within Messaging.

Negative Factors

Collectibles Growth Concern

There is concern about the episodic nature of collectibles growth, which may moderate in the future.

Valuation Concerns

We are still assigning a modest discount to the 18+x to EPS we see for faster growing, mature ecommerce platforms, although this translates into 13x EBITDA, which is not overly cheap, especially relative to eBay’s trading history.

eBay Business Overview & Revenue Model

Company Description

eBay Inc. is a global e-commerce platform that facilitates consumer-to-consumer and business-to-consumer sales through its website. Founded in 1995, eBay operates in various sectors, including online auctions, fixed-price sales, and classifieds. The platform enables users to buy and sell a wide range of goods and services, including electronics, clothing, collectibles, and more, while also providing a marketplace for businesses to reach a broader audience.

How the Company Makes Money

eBay generates revenue primarily through transaction fees charged on sales made through its platform. The company earns a percentage of the final sale price (known as a 'Final Value Fee') for items sold on its marketplace, which varies based on the category of the item and the seller's status. Additionally, eBay charges listing fees for sellers who wish to feature their items in auction or fixed-price formats. Another significant revenue stream comes from advertising services, where sellers can pay for enhanced visibility of their listings through promoted listings. eBay also offers payment processing services through its managed payments system, allowing it to collect fees on transactions processed through its platform. Strategic partnerships with shipping companies and payment providers further support its revenue generation, while the vast user base and diverse product offerings help maintain high engagement and transaction volumes.

eBay Financial Statement Overview

Summary

eBay demonstrates solid financial health with strong profitability and efficient cash flow generation. However, high leverage levels pose potential risks, necessitating focus on cost control and debt management.

Income Statement

eBay has shown strong profitability with a consistent Gross Profit Margin around 71-72% and a healthy Net Profit Margin of approximately 20.9% in the TTM. Revenues have grown moderately at 1.8% from the previous year, indicating steady business operations. However, the EBIT and EBITDA margins have seen slight fluctuations, with the TTM showing a slight decline in EBIT margin to 21.4% compared to past performance, suggesting a need for cost management improvements.

Balance Sheet

The company maintains a high Debt-to-Equity Ratio of 1.48 in the TTM, reflecting significant leverage, which could pose risks if not managed carefully. Return on Equity has improved to 45.97% in the TTM, indicating strong shareholder returns. Nevertheless, the Equity Ratio has decreased to 26.44%, highlighting increased liabilities relative to assets.

Cash Flow

eBay's Free Cash Flow has decreased by 28% in the TTM, which could impact long-term investment capabilities. However, the Operating Cash Flow to Net Income Ratio is robust at 0.88, showcasing efficient cash generation from operations. The Free Cash Flow to Net Income Ratio also remains strong at 0.65, indicating effective conversion of income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.47B	10.28B	10.11B	9.79B	10.42B	8.89B
Gross Profit	7.53B	7.40B	7.28B	7.12B	7.77B	7.10B
EBITDA	3.03B	2.86B	4.37B	-924.00M	1.17B	4.23B
Net Income	2.18B	1.98B	2.77B	-1.27B	13.61B	5.67B
Balance Sheet
Total Assets	17.96B	19.36B	21.62B	20.85B	26.63B	19.31B
Cash, Cash Equivalents and Short-Term Investments	4.27B	6.22B	9.02B	7.51B	7.32B	3.49B
Total Debt	7.16B	7.86B	8.23B	9.42B	9.43B	8.21B
Total Liabilities	13.21B	14.21B	15.22B	15.70B	16.85B	15.75B
Stockholders Equity	4.75B	5.16B	6.40B	5.15B	9.78B	3.56B
Cash Flow
Free Cash Flow	1.41B	1.96B	1.97B	1.80B	2.21B	1.93B
Operating Cash Flow	1.91B	2.41B	2.43B	2.25B	2.66B	2.42B
Investing Cash Flow	2.69B	2.21B	240.00M	2.46B	3.66B	3.79B
Financing Cash Flow	-3.96B	-3.81B	-2.45B	-3.79B	-6.53B	-5.69B

eBay Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 98.55
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 98.55 is above the 20-day moving average (MA) of 94.47, above the 50-day MA of 84.14, and above the 200-day MA of 70.77, indicating a bullish trend. The MACD of 4.79 indicates Positive momentum. The RSI at 67.75 is Neutral, neither overbought nor oversold. The STOCH value of 57.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EBAY.

eBay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SE	78 Outperform	$109.84B	94.14	14.48%	―	34.12%	―
EBAY	77 Outperform	$45.34B	21.93	42.63%	1.14%	3.05%	-10.82%
JD	73 Outperform	$49.73B	9.00	17.26%	3.06%	14.61%	32.78%
MELI	72 Outperform	$123.23B	60.02	43.83%	―	38.27%	46.21%
ETSY	65 Neutral	$6.21B	50.11	-39.97%	―	2.38%	-38.88%
CPNG	62 Neutral	$52.41B	144.76	8.55%	―	18.69%	-65.55%
Sector *	61 Neutral	$17.72B	12.54	-5.44%	3.05%	1.52%	-15.30%

eBay Corporate Events

eBay Stockholders Vote on Key Proposals at Meeting

At the 2025 Annual Meeting, eBay‘s stockholders voted on six proposals, including the election of 11 directors to serve until the 2026 Annual Meeting. The stockholders ratified PricewaterhouseCoopers LLP as independent auditors and approved executive compensation and the amendment of the Equity Incentive Award Plan. However, proposals regarding the special stockholder meeting threshold and director election resignation governance policy were not approved.