eBay (EBAY) AI Stock Analysis

• Market Cap: $41.93B
• Dividend Yield: 1.22%
• Average Volume (3M): 5.76M
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.50
• Revenue Growth: 3.05%
• EPS Growth: -10.82%
• Country: US
• Employees: 11,500
• Sector: Consumer Cyclical
• Sector Strength: 60
• Industry: Specialty Retail
• EPS (TTM): 1.37
• Shares Outstanding: 457,000,000
• 10 Day Avg. Volume: 8,269,837
• 30 Day Avg. Volume: 5,764,249
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 5.03
• Enterprise Value/Ebitda: 12.52
• 1Y Price Target: $87.38
• Price Target Upside: -4.27% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27

• Rating: 80 Outperform
• Price Target: $106.00 ▲(16.13% Upside)

eBay's strong earnings performance and strategic initiatives drive a positive outlook, reflected in the high earnings call score. While financial performance and technical analysis are robust, high leverage and valuation concerns slightly temper the overall score.

Positive Factors

Earnings and Guidance

EBay absolutely crushed 2Q expectations and their own prior guidance while also providing a 3Q outlook that suggests accelerating GMV growth.

Focus Categories

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

Marketplace Activity

EBAY’s US GMV accelerated from ~2% growth to 7%, indicating a positive trend in marketplace activity.

Negative Factors

Growth Concerns

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

Valuation and Trading History

A modest discount is assigned to the 18+x to EPS for faster growing, mature ecommerce platforms, translating into 13x EBITDA, which is not overly cheap relative to eBay’s trading history.

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 transaction fees, which it charges to sellers for listing and successfully selling items on its platform. These include insertion fees for listing items and final value fees, which are a percentage of the total sale amount. Additionally, eBay offers optional listing upgrades and promotional tools to enhance visibility, which are also charged to sellers. eBay's advertising services, where sellers can pay for promoted listings to increase exposure, contribute to its revenue as well. Furthermore, eBay earns from its managed payments system, where it provides end-to-end payment processing solutions for sellers, charging a fee for these services. Strategic partnerships, such as with payment processors like Adyen, as well as initiatives to enhance user experience and expand its platform capabilities, also play a role in its financial performance.

eBay Financial Statement Overview

Summary

eBay demonstrates strong profitability with a high Gross Profit Margin and healthy Net Profit Margin. However, leverage remains high, posing potential risks. Cash flow generation is efficient, but a decline in Free Cash Flow could impact future investments.

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	3.75B	5.89B	9.02B	7.47B	7.32B	3.83B
Total Debt	7.04B	7.86B	8.23B	9.29B	9.28B	8.14B
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: 91.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 91.28 is above the 20-day moving average (MA) of 81.33, above the 50-day MA of 78.01, and above the 200-day MA of 68.28, indicating a bullish trend. The MACD of 3.67 indicates Negative momentum. The RSI at 73.13 is Negative, neither overbought nor oversold. The STOCH value of 92.11 is Negative, 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
EBAY	80 Outperform	$41.93B	20.27	42.63%	1.22%	3.05%	-10.82%
BABA	79 Outperform	$284.12B	15.33	13.04%	1.69%	5.17%	74.55%
PDD	78 Outperform	$152.85B	11.85	36.31%	―	35.04%	22.04%
MELI	77 Outperform	$120.45B	58.44	49.11%	―	41.92%	81.11%
CPNG	74 Outperform	$52.18B	207.81	6.06%	―	20.88%	-80.08%
ETSY	63 Neutral	$5.82B	47.00	-39.97%	―	2.38%	-38.88%
Sector *	61 Neutral	$16.45B	10.04	-8.59%	3.35%	1.53%	-21.72%

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.

The most recent analyst rating on (EBAY) stock is a Hold with a $64.00 price target. To see the full list of analyst forecasts on eBay stock, see the EBAY Stock Forecast page.