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eBay Inc. (EBAY), situated in California, runs marketplace platforms that facilitate the buying and selling of a wide range of products. Valued at a market cap of $28.9 billion, eBay operates across the Americas, Europe, Asia, and globally.
Shares of the online marketplace company have significantly outperformed the broader market over the past year. Over the past 52 weeks, EBAY has soared 53.5%, surpassing the S&P 500 Index’s ($SPX) 32.7% returns. In 2024, EBAY has gained 41%, outpacing SPX’s 21.2% gain on a YTD basis.
Zooming in further, EBAY has also exceeded the ProShares Online Retail ETF’s (ONLN) 43.1% returns over the past 52 weeks and 24.7% gains on a YTD basis.
On Oct. 31, eBay shares dropped 20.8% after the company reported third-quarter earnings on Oct. 30 and revenue guidance that missed analysts' expectations, along with an EBITDA shortfall.
For the current fiscal year, ending in December, analysts expect eBay to report an EPS growth of 22.6% year over year to $3.85. However, the company’s earnings surprise history is mixed. It beat or matched the consensus estimate in two of the past four quarters while missing the forecasts on two other occasions.
Among the 28 analysts covering the EBAY stock, the consensus rating is a “Moderate Buy.” That’s based on nine “Strong Buy” ratings, one “Moderate Buy,” 17 “Holds,” and one “Strong Sell.”
This configuration is slightly less bullish than a month before, with eight analysts recommending a “Strong Buy.”
On Nov. 5, Bernstein SocGen Group upgraded eBay from “Market-Perform” to “Outperform,” maintaining a price target of $70. The upgrade follows a stock pullback, which analysts see as an attractive entry point. eBay’s focus on product enhancements and GMV growth is expected to lead to modest improvements, potentially surpassing market expectations.
Despite past market share losses, the company's strategic initiatives, including targeted growth areas and stock buybacks, position it for the upside, supporting the upgraded rating.
EBAY’s mean price target of $62.03 represents a marginal premium from current price levels. The Street-high target of $72 indicates a potential upside of 17.1%.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
