eBay (EBAY) AI Stock Analysis

• Market Cap: $37.97B
• Dividend Yield: 1.38%
• Average Volume (3M): 4.38M
• Price to Earnings (P/E): 18.3
• Beta (1Y): 0.38
• 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: 5,365,286
• 30 Day Avg. Volume: 4,382,036
• 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: 1.21
• Enterprise Value/Revenue: 4.30
• Enterprise Value/Gross Profit: 6.00
• Enterprise Value/Ebitda: 15.76
• 1Y Price Target: $96.25
• Price Target Upside: 14.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24
• EPS Forecast (FY): 5.45
• Revenue Forecast (FY): $11.00B

• Rating: 70 Outperform
• Price Target: $91.00 ▲(8.27% 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

Revenue Growth

The 8% increase in GMV indicates strong demand and effective marketplace strategies, supporting long-term revenue growth and market position.

AI and Technological Advancements

Investments in AI enhance user engagement and operational efficiency, providing a competitive edge and fostering sustainable growth.

Focus Category Growth

Strong growth in focus categories like collectibles and fashion highlights eBay's ability to capitalize on niche markets, driving long-term expansion.

Negative Factors

High Debt Levels

High leverage can limit financial flexibility and increase risk, potentially impacting eBay's ability to invest in growth opportunities.

Declining Cash Flow Growth

Decreasing cash flow growth may hinder eBay's capacity to fund operations and strategic initiatives, affecting long-term financial health.

Margin Pressures

Rising expenses and margin pressures could affect profitability, challenging eBay's ability to maintain strong financial performance over time.

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: Positive
• Last Price: 84.05
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• 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 84.05 is above the 20-day moving average (MA) of 83.16, below the 50-day MA of 85.71, and above the 200-day MA of 80.30, indicating a neutral trend. The MACD of -0.21 indicates Negative momentum. The RSI at 51.00 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 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
MELI	77 Outperform	$101.07B	48.70	40.65%	―	38.01%	44.52%
EBAY	70 Outperform	$37.97B	18.29	42.43%	1.38%	4.89%	17.30%
JD	70 Outperform	$41.93B	9.83	13.68%	3.37%	16.54%	-3.61%
SE	69 Neutral	$73.87B	53.79	15.66%	―	35.85%	1336.48%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
CPNG	60 Neutral	$40.95B	106.15	8.73%	―	16.63%	-62.54%
ETSY	57 Neutral	$5.50B	38.48	―	―	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.

eBay CEO Clarifies Q4 2025 GMV Guidance

On October 30, 2025, eBay‘s CEO Jamie Iannone clarified a misstatement made during an interview regarding the company’s Q4 2025 gross merchandise volume (GMV) guidance. He corrected his earlier comment, specifying that the 4% – 6% GMV growth guidance was intended for the next quarter, not the next year, aligning with the company’s previous earnings release.