eBay Inc. Reports Mixed Earnings Amid Strong Market Performance

San Jose, California-based eBay Inc. (EBAY) operates marketplace platforms that connect buyers and sellers, allowing them to list, sell, and purchase a variety of products. With a market capitalization of $32 billion, eBay’s operations extend across the Americas, Indo-Pacific, and EMEA.

Over the last year, eBay has notably outperformed the broader market and is projected to continue this trend into 2025. Over the past 52 weeks, EBAY’s stock prices have surged 41.6% and 13.5% on a year-to-date (YTD) basis. In contrast, the S&P 500 Index ($SPX) has seen gains of only 10.2% over the past year and a 3.9% decline on a YTD basis.

Narrowing the focus, EBAY has also exceeded the performance of the Online Retail ETF (ONLN), which has registered 5.6% gains over the past year and a 3.2% decline YTD.

Following the release of its mixed Q1 earnings report on April 30, EBAY’s stock marginally declined during the trading session. The company announced a 1.1% year-over-year increase in net revenues, totaling $2.6 billion, which exceeded Wall Street’s expectations. However, its non-GAAP operating income slightly fell to $771 million compared to the previous year’s figures. Additionally, the company’s non-GAAP operating margin decreased to 29.8%, down from 30.3% in the same quarter last year. On a positive note, EBAY’s non-GAAP earnings per share (EPS) rose 10.4% year-over-year to $1.38.

Looking ahead to the current fiscal year 2025, which ends in December, analysts project EBAY will report a 7.6% year-over-year growth in adjusted earnings, reaching $4.23 per share. The company has a mixed history of earnings surprises, having met or exceeded Wall Street’s bottom-line estimates three out of the last four quarters while missing on one occasion.

Overall, eBay holds a consensus “Moderate Buy” rating. Among the 29 analysts covering the stock, there are eight “Strong Buys,” one “Moderate Buy,” 17 “Holds,” one “Moderate Sell,” and two “Strong Sells.”

This outlook is slightly less optimistic than a month ago, when nine analysts had issued “Strong Buy” recommendations.

On May 1, Morgan Stanley (MS) analyst Nathan Feather upheld a “Buy” rating for eBay while also increasing the price target to $74.

Currently, eBay’s stock price exceeds its mean price target of $67.41; however, its highest target of $79 indicates a potential upside of 12.4%.

On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) any positions in the securities mentioned in this article. All information and data presented herein are solely for informational purposes. For more information, please review the Barchart Disclosure Policy here.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.