eBay (EBAY) AI Stock Analysis

• Market Cap: $42.39B
• Dividend Yield: 1.38%
• Average Volume (3M): 3.45M
• Price to Earnings (P/E): 20.4
• Beta (1Y): 0.39
• Revenue Growth: 4.89%
• EPS Growth: 17.30%
• Country: US
• Employees: 11,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.36
• Shares Outstanding: 452,000,000
• 10 Day Avg. Volume: 3,527,612
• 30 Day Avg. Volume: 3,447,854
• PEG Ratio: -0.65
• Price to Book (P/B): 5.96
• Price to Sales (P/S): 2.99
• P/FCF Ratio: 15.71
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 4.33
• Enterprise Value/Gross Profit: 6.04
• Enterprise Value/Ebitda: 15.86
• 1Y Price Target: $95.00
• Price Target Upside: 1.30% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 8
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 70 Outperform
• Price Target: $100.00 ▲(6.63% Upside)

eBay's overall stock score reflects strong financial performance and positive earnings call sentiment, offset by technical analysis indicating potential short-term challenges. The company's strategic initiatives and AI advancements support long-term growth, but leverage and cash flow concerns require monitoring.

Positive Factors

High gross and net profit margins

Sustained gross margins near 72% and net margins above 20% indicate a business with strong inherent profitability and pricing power. These margins provide durable cash generation capacity to fund product development, platform investments, and seller incentives over the next several quarters.

Exceptional return on equity

A ROE around 45% reflects highly efficient capital allocation and profitable operations relative to equity base. Over 2-6 months this supports shareholder returns and reinvestment potential, and signals management’s ability to generate strong earnings from existing assets.

Scale and diversified growth vectors

Growing GMV and meaningful advertising revenue demonstrate a multi-pronged revenue model—marketplace transactions plus ads—that leverages large active user base. Combined with AI improvements and eBay Live expansion, this structural diversification supports durable top-line expansion and monetization upside.

Negative Factors

High leverage on the balance sheet

A D/E near 1.5 signals elevated financial leverage that can limit flexibility for buybacks, M&A, or cushioning against shocks. The recent $1B senior note issuance further locks in long-term fixed obligations, increasing interest expense sensitivity and constraining free cash deployment.

Declining free cash flow growth

A roughly 7.5% decline in FCF growth reduces the company's capacity to self-fund strategic investments and returns. Persisting FCF weakness over several quarters could force higher reliance on debt or slower reinvestment in shipping, AI, and platform features that drive long-term competitiveness.

Cross-border trade friction from policy change

Removal of the de minimis exemption is a structural regulatory shift that raises friction and costs for cross-border sellers and buyers. This can durably reduce international GMV, complicate shipping flows and seller participation, and pressure growth in eBay’s globally oriented marketplace segments.

eBay Business Overview & Revenue Model

Company Description

eBay Inc. operates marketplace platforms that connect buyers and sellers in the United States and internationally. The company's Marketplace platform includes its online marketplace at ebay.com and the eBay suite of mobile apps. Its platforms enable users to list, buy, sell, and pay for items through various online, mobile, and offline channels that include retailers, distributors, liquidators, import and export companies, auctioneers, catalog and mail-order companies, directories, search engines, commerce participants, shopping channels, and networks. The company was founded in 1995 and is headquartered in San Jose, California.

How the Company Makes Money

eBay generates revenue primarily through its marketplace services, which include listing fees, final value fees, and subscription fees from sellers. When a seller lists an item on eBay, they may pay a listing fee, and once the item sells, eBay charges a final value fee, which is a percentage of the total sale price. Additionally, eBay offers subscription plans for sellers that provide benefits such as increased visibility and reduced fees. Beyond marketplace transactions, eBay earns revenue from advertising services, where sellers can promote their listings on the platform. The company has also invested in payment processing through its partnership with Adyen, enhancing transaction efficiency and security, which contributes to its overall earnings.

eBay Financial Statement Overview

Summary

eBay demonstrates solid profitability with strong profit margins and efficient equity utilization. However, concerns about leverage and declining cash flow growth need attention. The company shows stable revenue growth but faces pressure on operational efficiency.

Income Statement

eBay's income statement shows a stable revenue growth rate of 2.33% TTM, with strong gross and net profit margins at 71.64% and 20.37% respectively. However, the EBIT and EBITDA margins have slightly decreased compared to previous years, indicating some pressure on operational efficiency.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.49, which is a concern for leverage. However, the return on equity is robust at 44.59%, indicating efficient use of equity to generate profits. The equity ratio stands at 26.52%, showing a moderate level of equity financing.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 7.54% TTM, which is a negative indicator. However, the operating cash flow to net income ratio is healthy at 0.36, and the free cash flow to net income ratio is strong at 0.75, suggesting good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.71B	10.28B	10.11B	9.79B	10.42B	8.89B
Gross Profit	7.68B	7.40B	7.28B	7.12B	7.77B	7.10B
EBITDA	2.92B	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	17.79B	19.36B	21.62B	20.85B	26.63B	19.31B
Cash, Cash Equivalents and Short-Term Investments	3.38B	6.22B	9.02B	7.51B	7.32B	3.49B
Total Debt	7.01B	7.86B	8.23B	9.42B	9.43B	8.21B
Total Liabilities	13.07B	14.21B	15.22B	15.70B	16.85B	15.75B
Stockholders Equity	4.72B	5.16B	6.40B	5.15B	9.78B	3.56B
Cash Flow
Free Cash Flow	1.53B	1.96B	1.97B	1.80B	2.21B	1.93B
Operating Cash Flow	2.05B	2.41B	2.43B	2.25B	2.66B	2.42B
Investing Cash Flow	2.91B	2.21B	240.00M	2.46B	3.66B	3.79B
Financing Cash Flow	-3.83B	-3.81B	-2.45B	-3.79B	-6.53B	-5.69B

eBay Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 93.78
• 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 Neutral. The current price of 93.78 is above the 20-day moving average (MA) of 93.11, above the 50-day MA of 87.51, and above the 200-day MA of 83.94, indicating a neutral trend. The MACD of 1.55 indicates Positive momentum. The RSI at 52.63 is Neutral, neither overbought nor oversold. The STOCH value of 26.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for EBAY.

eBay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MELI	73 Outperform	$108.86B	51.26	40.65%	―	38.01%	44.52%
EBAY	70 Outperform	$42.39B	20.41	42.43%	1.38%	4.89%	17.30%
JD	70 Outperform	$41.05B	9.64	13.68%	3.37%	16.54%	-3.61%
SE	70 Outperform	$67.25B	46.27	15.66%	―	35.85%	1336.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPNG	60 Neutral	$36.61B	91.58	8.73%	―	16.63%	-62.54%
ETSY	57 Neutral	$5.29B	37.26	―	―	1.98%	-20.98%

eBay Corporate Events

eBay Closes $1 Billion Senior Notes Offering

On November 6, 2025, eBay Inc. successfully closed its offering of $1 billion in senior unsecured notes, divided into $600 million of 4.250% Notes due 2029 and $400 million of 5.125% Notes due 2035. This financial move, executed under an underwriting agreement with major financial institutions, aims to strengthen eBay’s financial position by providing additional capital, potentially impacting its operational flexibility and market competitiveness.

The most recent analyst rating on (EBAY) stock is a Hold with a $92.00 price target. To see the full list of analyst forecasts on eBay stock, see the EBAY Stock Forecast page.