Jefferies analyst John Colantuoni notes that eBay (EBAY) announced last week that it will raise final value fees in a number of categories, which the firm estimates collectively represent about 80% of Gross Merchandise Value and calls “a surprising move” given transaction fees have been under pressure for about 10 years. Higher final value fees will help eBay offset certain neat-term headwinds to take rate and while the impact to EBITDA will ultimately depend on reinvestment, the firm expects the announcement to reduce stock downside prior to Q4 and thinks the move could prove defensive, the analyst tells investors. Jefferies keeps an Underperform rating and $49 price target on eBay shares.
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