eBay (NASDAQ:EBAY) stock gained about 4% in yesterday’s extended trading session after it disclosed plans to lay off 1,000 employees, or about 9% of its workforce. With the latest move, eBay aims to reduce expenses as its performance remains impacted by a slowdown in consumer spending and intense competition from its rivals, such as Amazon (AMZN) and Walmart (WMT).
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This is the company’s second attempt to streamline its organizational structure. In February 2023, EBAY cut 500 roles, or about 4% of its workforce, due to reduced demand for its services.
It is worth noting that several Wall Street companies, especially those in the tech sector, have announced headcount reductions this month in an effort to keep costs under control and strengthen their bottom-line numbers. Some of the prominent names that announced layoffs include Alphabet (GOOGL), Amazon, Meta Platforms (META), and Unity (U).
Is eBay Stock a Buy or Sell?
In the face of rising competition, eBay’s commitment to innovate and prioritize customer preference is expected to support its performance growth. Moreover, strategic investments in product development and the adoption of advanced AI solutions have streamlined its internal processes.
Of the 20 analysts covering eBay, five have a Buy rating, 13 suggest a Hold, and two assigned a Sell rating in the past three months. Overall, the stock comes in as a Hold. The average EBAY stock price target is $45.44, implying upside potential of 9.7%. Shares are down 14.4% over the past six months.
