eBay Inc. (EBAY), headquartered in San Jose, California, operates marketplace platforms that connect buyers and sellers in the U.S., U.K., China, Germany, and internationally. Valued at $26.05 billion by market cap, the company’s online marketplace connects millions of buyers and sellers in 190 markets worldwide.
Shares of this global marketplace giant have underperformed the broader market over the past year. EBAY has gained 19.6% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 26.6%. But in 2024, EBAY stock is up 19.2%, surpassing SPX’s 11.3% rise on a YTD basis.
Narrowing the focus, EBAY’s gains over the past 52 weeks are easily overshadowed by Nasdaq Internet Invesco ETF (PNQI). The exchange-traded fund has gained 38.3% over this period. However, the stock’s gains on a YTD basis outshine the ETF’s 11.5% returns over the same time frame.
On Feb. 28, EBAY shares surged by 4% after the company raised its dividend payment to shareholders by 8% and announced a new $2 billion stock repurchase program. The company will now pay its shareholders a quarterly dividend of $0.27 per share, up from $0.25.
On May 1, the company reported its Q1 results, revealing weak revenue growth and guidance for the current quarter below Wall Street’s expectations. The stock lost 9.5% in the pre-market session after the results were released.
For the current fiscal year, ending in December 2024, analysts expect EBAY’s EPS to grow 18.5% to $3.72 on a diluted basis. The company’s earnings surprise history is disappointing. It missed the consensus estimate in three of the last four quarters while beating the forecast on another occasion.
Among the 25 analysts covering EBAY stock, the consensus rating is a “Moderate Buy.” That’s based on eight “Strong Buy” ratings, 16 “Holds,” and one “Strong Sell.”
This configuration is more bullish than three months ago, with five suggesting a “Strong Buy” and one giving a “Moderate Sell.”
Recently, Morgan Stanley analysts led by Nathan Feather raised the rating on EBAY stock from “Underweight” to “Overweight” and raised the target price to $62 from $35, implying a potential upside of 21% from current levels.
The mean price target of $52.09 represents a 1.7% premium to EBAY’s current price levels. The Street-high price target of $65 suggests an ambitious upside potential of 26.9%.
On the date of publication, Dipanjan Banchur 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.
