Stock Analysis: B bullish or B negative on eBay's Shares?
EBay Shines Amid Market Turmoil: Q1 2025 Earnings Analysis
Hang on, folks! Let's dive into the intriguing world of eBay Inc., that Silicon Valley giant based in San Jose, California. They're the fellows who run those snazzy marketplace platforms linking buyers and sellers like a well-oiled machine. With a whopping market cap of $32 billion, eBay's influence stretches across three continents - Americas, Indo-Pacific, and EMEA.
The past year and 2025 have been a caterwauling ride for the broader market, but our boyeBay has maneuvered like a pro! Over the last 52 weeks, eBay's stock prices have surged a jaw-dropping 41.6%, and a commendable 13.5% on a YTD basis. On the other hand, the S&P 500 Index ($SPX) has only managed a tepid 10.2% gain over the past year, and a paltry 3.9% decline on a YTD basis.
You might've noticed the headline, "Markets are crashing from tariffs-Mode Mobile is still growing (32,481%). Pre-IPO shares at $0.30!" That's some other business, folks. Let's refocus!
Narrowing our scope, eBay has been kicking butt when it comes to outperforming the industry-focused Online Retail ETF (ONLN). The e-commerce titan has racked up a respectable 5.6% gain over the past 52 weeks and a mere 3.2% dip on a YTD basis, compared to ONLN's 5.6% gains over the past 52 weeks and 3.2% dip on a YTD basis.
Now, let's talk about their Q1 results on Apr. 30, 2025. Despite a slight dip in trading on that day, eBay reported a minor 1.1% year-over-year increase in net revenues, totalling $2.6 billion. This figure surpassed Street forecasts, but the non-GAAP operating income dipped marginally, and the non-GAAP operating margin suffered a minuscule decline to 29.8%. However, the non-GAAP EPS soared a substantial 10.4% year-over-year to $1.38.
When we look at the fiscal year 2025, analysts expect eBay to report a considerable 7.6% year-over-year growth in adjusted earnings to a whopping $4.23 per share. With a mixed earnings surprise history, eBay has beaten or met the Street's bottom-line estimates thrice over the past four quarters, while missing on one occasion.
So, what's the analysts' consensus? Well, overall, they have a "Moderate Buy" rating for eBay. Out of the 29 analysts covering the stock, eight are yelling "Strong Buys," one is being discrete with a "Moderate Buy," 17 keep a watchful eye with a "Hold," one murmurs a "Moderate Sell," and two yell a loud "Strong Sell."
Now, that's a slightly less bullish outlook compared to a month ago, when nine analysts were shouting "Strong Buy" recommendations. But keep in mind, being the affable type, eBay's current stock price is still above its mean price target of $67.41. The street-high target of $79 suggest an intriguing 12.4% upside potential!
In a headline-grabbing move, Morgan Stanley analyst Nathan Feather maintained a "Buy" rating on eBay, while raising the price target to a hefty $74 – a neat 10% hike from the previous target.
Stay tuned for more insightful tidbits as we delve deeper into eBay's performance, keeping you in the loop with the latest happenings!
Investors might find opportunities in the finance sector, as eBay's stock-market performance outshines the S&P 500 Index and the Online Retail ETF, with a YTD gain of 13.5% and 5.6% respectively. Despite a minor drop in Q1 2025 earnings, analysts still maintain a "Moderate Buy" rating for eBay, with an upward price target of $74, suggesting a potential 12.4% growth in stocks.
