eBay (EBAY) AI Stock Analysis

• Market Cap: $43.58B
• Dividend Yield: 1.17%
• Average Volume (3M): 5.63M
• Price to Earnings (P/E): 21.1
• Beta (1Y): 0.46
• Revenue Growth: 3.05%
• EPS Growth: -10.82%
• Country: US
• Employees: 11,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.37
• Shares Outstanding: 457,000,000
• 10 Day Avg. Volume: 5,159,657
• 30 Day Avg. Volume: 5,634,530
• 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: 0.87
• Enterprise Value/Revenue: 3.62
• Enterprise Value/Gross Profit: 5.03
• Enterprise Value/Ebitda: 12.09
• 1Y Price Target: $92.28
• Price Target Upside: -5.06% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27

• Rating: 76 Outperform
• Price Target: $103.00 ▲(5.97% Upside)

eBay's overall stock score is driven by strong earnings performance and strategic growth initiatives, particularly in focus categories and AI-driven enhancements. While financial health is solid, high leverage and mixed technical indicators present some risks. Valuation is fair, supporting a positive outlook.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term financial stability.

Strategic Acquisition

Acquiring Tise enhances eBay's C2C capabilities, expanding its global reach and strengthening its competitive position in the marketplace.

Advertising Revenue Growth

Growth in advertising revenue diversifies income streams and enhances profitability, contributing to sustainable financial performance.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting long-term financial health if not managed effectively.

Decreased Free Cash Flow

Reduced free cash flow may constrain investment capabilities and limit growth opportunities, affecting long-term strategic initiatives.

European Market Challenges

Challenges in European markets could hinder revenue growth and profitability, impacting eBay's international expansion efforts.

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 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	3.13B	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: 97.20
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 97.2 is above the 20-day moving average (MA) of 91.95, above the 50-day MA of 92.76, and above the 200-day MA of 76.92, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 65.32 is Neutral, neither overbought nor oversold. The STOCH value of 89.20 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	76 Outperform	$43.58B	21.11	42.63%	1.17%	3.05%	-10.82%
MELI	71 Outperform	$106.22B	53.05	43.83%	―	38.27%	46.21%
JD	71 Outperform	$52.19B	9.37	17.26%	2.95%	14.61%	32.78%
SE	69 Neutral	$92.51B	78.48	14.48%	―	34.12%	―
ETSY	66 Neutral	$7.26B	59.09	―	―	2.38%	-38.88%
CPNG	62 Neutral	$56.75B	156.90	8.55%	―	18.69%	-65.55%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

eBay Corporate Events

eBay Inc. Surpasses Expectations in Q2 2025 Earnings Call

The latest earnings call for eBay Inc. was marked by a largely positive sentiment, highlighting the company’s robust financial performance and growth in its focus categories. Despite facing challenges in certain international markets and trade policy impacts, the overall outlook remains optimistic, driven by successful strategic initiatives.

eBay Inc. Reports Strong Q2 2025 Results

eBay Inc. is a global commerce leader that connects millions of buyers and sellers worldwide, offering a vibrant marketplace for unique selections and great value. The company operates in the e-commerce sector and is known for its extensive reach in over 190 markets.