eBay (EBAY) AI Stock Analysis

• Market Cap: $36.75B
• Dividend Yield: 1.4%
• Average Volume (3M): 5.72M
• Price to Earnings (P/E): 17.7
• Beta (1Y): 0.42
• Revenue Growth: 4.42%
• EPS Growth: 17.30%
• Country: US
• Employees: 11,500
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): 1.36
• Shares Outstanding: 457,000,000
• 10 Day Avg. Volume: 5,688,755
• 30 Day Avg. Volume: 5,722,732
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $95.96
• Price Target Upside: 18.02% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 24

• Rating: 70 Outperform
• Price Target: $92.00 ▲(13.15% Upside)

eBay's overall stock score is driven by strong earnings performance and strategic growth initiatives, particularly in AI and focus categories. While financial performance is solid, the high debt-to-equity ratio poses a risk. Technical indicators suggest potential bearish momentum, but valuation remains reasonable. The positive sentiment from the earnings call further supports the stock's potential.

Positive Factors

Revenue Growth

eBay's consistent revenue growth, surpassing expectations, indicates strong market demand and effective strategic execution, supporting long-term business sustainability.

AI and Technology Innovations

Leveraging AI for operational enhancements boosts listing quality and engagement, positioning eBay for sustained competitive advantage in e-commerce.

Advertising Revenue Growth

Strong growth in advertising revenue enhances eBay's diversified income streams, providing resilience against market fluctuations and supporting long-term profitability.

Negative Factors

High Debt Levels

Significant leverage increases financial risk and may constrain future investment capabilities, potentially impacting eBay's long-term financial stability.

European Market Challenges

Persistent low consumer confidence in key European markets could hinder eBay's growth prospects and revenue diversification in the region.

Tariff and Trade Pressures

Tariff increases and trade policy changes may elevate costs and disrupt supply chains, affecting eBay's pricing strategies and profit margins.

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 consistent revenue growth and strong profitability margins. The company effectively manages its operations, as evidenced by healthy EBIT and EBITDA margins. However, the high debt-to-equity ratio indicates a reliance on debt financing, which could increase financial risk. Cash flow generation is improving, but there is room for enhancing the conversion of net income to free cash flow.

Income Statement

eBay's income statement shows a stable revenue growth with a 2.33% increase in TTM. The gross profit margin remains strong at approximately 71.88%, indicating efficient cost management. However, the net profit margin of 20.86% suggests room for improvement in profitability. The EBIT and EBITDA margins are healthy at 26.51% and 29.92%, respectively, reflecting solid operational performance.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.51, indicating significant leverage, which could pose financial risk. Return on equity is robust at 43.08%, showcasing effective use of equity to generate profits. The equity ratio stands at 26.52%, suggesting a moderate level of equity financing relative to total assets.

Cash Flow

Cash flow analysis shows a positive free cash flow growth rate of 11.17% in TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.96, suggesting strong cash conversion. However, the free cash flow to net income ratio of 0.74 indicates that not all net income is translating into free cash flow, which could be a concern.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.71B	10.28B	10.11B	9.79B	10.42B	8.89B
Gross Profit	7.68B	7.40B	7.28B	7.12B	7.77B	7.10B
EBITDA	2.82B	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	17.79B	19.36B	21.62B	20.85B	26.63B	19.31B
Cash, Cash Equivalents and Short-Term Investments	3.38B	6.22B	9.02B	7.51B	7.32B	3.49B
Total Debt	7.01B	7.86B	8.23B	9.42B	9.43B	8.21B
Total Liabilities	13.07B	14.21B	15.22B	15.70B	16.85B	15.75B
Stockholders Equity	4.72B	5.16B	6.40B	5.15B	9.78B	3.56B
Cash Flow
Free Cash Flow	1.56B	1.96B	1.97B	1.80B	2.21B	1.93B
Operating Cash Flow	2.09B	2.41B	2.43B	2.25B	2.66B	2.42B
Investing Cash Flow	2.91B	2.21B	240.00M	2.46B	3.66B	3.79B
Financing Cash Flow	-3.83B	-3.81B	-2.45B	-3.79B	-6.53B	-5.69B

eBay Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 81.31
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EBAY, the sentiment is Negative. The current price of 81.31 is below the 20-day moving average (MA) of 92.55, below the 50-day MA of 92.08, and above the 200-day MA of 77.60, indicating a neutral trend. The MACD of -0.22 indicates Positive momentum. The RSI at 30.63 is Neutral, neither overbought nor oversold. The STOCH value of 29.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for EBAY.

eBay Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MELI	―	$119.68B	57.62	40.65%	―	38.01%	44.52%
JD	―	$52.51B	9.33	17.26%	2.97%	14.61%	32.78%
EBAY	―	$36.75B	17.69	42.43%	1.40%	4.42%	17.30%
SE	―	$92.50B	79.28	14.48%	―	34.12%	―
CPNG	―	$58.25B	160.88	8.55%	―	18.69%	-65.55%
Sector *	―	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ETSY	―	$6.12B	43.34	―	―	1.98%	-20.98%

eBay Corporate Events

eBay’s Earnings Call: Strong Growth Amid Challenges

eBay’s Earnings Call Highlights Strong Performance Amid Challenges

eBay Inc. Reports Strong Q3 2025 Results

eBay Inc., a leading global commerce company, connects millions of buyers and sellers worldwide, offering a vibrant marketplace for unique and valuable items. The company operates primarily in the e-commerce sector, known for its innovative use of technology and commitment to economic opportunity.

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.