eBay: Meta Ruling Unlikely To Break Market Share Decline

Summary

• eBay Inc. has decided to spend its earnings on share buybacks instead of R&D and other investments, leading to market share losses as Amazon and others have pushed ecommerce forward.
• In a response to the EU's ruling against Meta Platforms, eBay listings are now allowed on Facebook Marketplace. The change could improve eBay's GMV, but I'm skeptical of the long-term impact.
• Ad revenues have aided eBay's recent growth, but with continued capital allocation on share buybacks, the underlying GMV stagnation hasn't seen an end.
• eBay stock already prices in low growth from the company, and an asymmetric risk-to-reward needs the GMV trajectory to change.

ymgerman

eBay Inc. (NASDAQ:EBAY) operates a well-recognized online marketplace platform, gaining revenues through collecting fees on sales and with advertising revenues. In 2023, the platform's gross merchandise value (GMV) was $73.2 billion. Revenues were split between the U.S. with 50% of revenues, the U.K. with

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