eBay (EBAY) AI Stock Analysis

• Market Cap: $35.55B
• Dividend Yield: 1.5%
• Average Volume (3M): 5.41M
• Price to Earnings (P/E): 18.4
• Beta (1Y): 0.57
• Revenue Growth: 2.04%
• EPS Growth: -15.61%
• Country: US
• Employees: 11,500
• Sector: Consumer Cyclical
• Sector Strength: 64
• Industry: Specialty Retail
• EPS (TTM): 1.38
• Shares Outstanding: 461,000,000
• 10 Day Avg. Volume: 3,643,882
• 30 Day Avg. Volume: 5,406,682
• PEG Ratio: 3.11
• Price to Book (P/B): 7.32
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 16.82
• Enterprise Value/Market Cap: 1.12
• Enterprise Value/Revenue: 0.97
• Enterprise Value/Gross Profit: 5.39
• Enterprise Value/Ebitda: 2.94
• 1Y Price Target: $70.74
• Price Target Upside: -8.26% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 25

• Rating: 77 Outperform
• Price Target: $87.00 ▲(12.83%Upside)

eBay's strong financial performance and positive earnings call sentiment are the primary drivers of its stock score. Technical indicators show bullish momentum, but caution is warranted due to overbought signals. The company's valuation is reasonable, and recent corporate events suggest a proactive approach to growth and innovation.

Positive Factors

Differentiation

EBAY's differentiation with non-new, in-season products contributes to its outperformance.

Financial Performance

EBAY reported solid 1Q results with revenue and margins above the high end of management's guidance.

Platform Resilience

EBay is building a more resilient platform through recent fee optimizations, improvements in discoverability, and investments in AI to drive personalization and reduce listings friction.

Negative Factors

Advertising Challenges

Advertising slowdown remains a key fundamental risk.

Growth Concerns

EBay's growth trails the broader eCommerce sector, impacting its competitive positioning.

Valuation Concerns

EBAY's peer average multiple appears unsustainable given the outlook for below-average EBITDA growth.

eBay Business Overview & Revenue Model

Company Description

eBay Inc. (EBAY) is a global e-commerce leader that connects millions of buyers and sellers around the world. Founded in 1995 and headquartered in San Jose, California, eBay operates in the Consumer Discretionary sector, primarily focusing on online retail services. The company's platform enables individuals and businesses to list new and used products across various categories, including electronics, fashion, home goods, and collectibles, either through auction-style listings or fixed-price sales.

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 exhibits strong financial health with consistent profitability, efficient cash generation, and a balanced capital structure. While revenue growth is modest, the company effectively manages its margins and cash flows, providing stability and potential for sustainable growth. The balance sheet is solid, though attention to leverage will be key in maintaining financial flexibility.

Income Statement

eBay's income statement shows a strong performance with a solid gross profit margin of 71.8% and a net profit margin of 19.8% for the TTM (Trailing-Twelve-Months). Despite a modest revenue growth rate of 0.28%, the company maintains healthy profitability with an EBIT margin of 22.3% and an EBITDA margin of 27.1%. These results highlight eBay's ability to generate profits efficiently, although the revenue growth trajectory is relatively flat.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 1.42, indicating a balanced approach to leveraging. With a return on equity (ROE) of 41.2% for the TTM, eBay demonstrates strong profitability relative to shareholder investment. The equity ratio stands at 26.1%, suggesting a reasonable proportion of assets financed by equity, which provides a stable financial foundation despite potential risks from leverage.

Cash Flow

eBay's cash flow statement is robust, with a free cash flow growth rate of 8.78% for the TTM, signaling effective cash management. The operating cash flow to net income ratio of 1.27 and a free cash flow to net income ratio of 1.04 illustrate strong cash generation relative to profits, underpinning the company's ability to fund operations and investments from cash flows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.31B	10.28B	10.11B	9.79B	10.42B	8.89B
Gross Profit	7.41B	7.40B	7.28B	7.12B	7.77B	7.10B
EBITDA	2.96B	2.86B	4.37B	-924.00M	1.17B	4.23B
Net Income	2.04B	1.98B	2.77B	-1.27B	13.61B	5.67B
Balance Sheet
Total Assets	18.95B	19.36B	21.62B	20.85B	26.63B	19.31B
Cash, Cash Equivalents and Short-Term Investments	4.79B	5.89B	9.02B	7.47B	7.32B	3.83B
Total Debt	7.18B	7.86B	8.23B	9.29B	9.28B	8.14B
Total Liabilities	14.00B	14.21B	15.22B	15.70B	16.85B	15.75B
Stockholders Equity	4.95B	5.16B	6.40B	5.15B	9.78B	3.56B
Cash Flow
Free Cash Flow	2.13B	1.96B	1.97B	1.80B	2.21B	1.93B
Operating Cash Flow	2.59B	2.41B	2.43B	2.25B	2.66B	2.42B
Investing Cash Flow	3.27B	2.21B	240.00M	2.46B	3.66B	3.79B
Financing Cash Flow	-4.37B	-3.81B	-2.45B	-3.79B	-6.53B	-5.69B

eBay Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 77.11
• 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 77.11 is above the 20-day moving average (MA) of 76.15, above the 50-day MA of 74.06, and above the 200-day MA of 66.89, indicating a bullish trend. The MACD of 0.69 indicates Negative momentum. The RSI at 61.81 is Neutral, neither overbought nor oversold. The STOCH value of 85.81 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
PDD	81 Outperform	$145.70B	11.03	36.31%	―	35.04%	22.04%
BABA	77 Outperform	$255.57B	13.98	13.04%	1.85%	5.17%	74.55%
EBAY	77 Outperform	$35.55B	18.43	36.48%	1.50%	2.04%	-15.61%
MELI	74 Outperform	$121.04B	58.55	49.11%	―	41.92%	81.11%
CPNG	74 Outperform	$54.61B	221.33	6.06%	―	20.88%	-80.08%
ETSY	64 Neutral	$6.03B	41.11	-39.97%	―	2.18%	-32.87%
Sector *	63 Neutral	$16.85B	11.30	-7.01%	2.93%	1.72%	-24.85%

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.

eBay Announces Leadership Changes and New CFO

On April 30, 2025, eBay announced several leadership changes, including the appointment of Peggy Alford as the new Chief Financial Officer, effective May 12, 2025. Alford brings extensive experience from her previous roles at PayPal and the Chan Zuckerberg Initiative. Additionally, eBay reported its first-quarter 2025 financial results, highlighting a revenue of $2.6 billion and a gross merchandise volume of $18.8 billion, both up by 1% on an as-reported basis. The company also introduced new AI-powered features and expanded services, such as the Authenticity Guarantee in Japan, contributing to its strategic growth and innovation efforts.