eBay: Holding Position Amidst Valuation And Macroeconomic Uncertainty

Apr. 30, 2025 4:10 AM ETeBay Inc. (EBAY) StockEBAY
BI Insights
122 Followers
(9min)

Summary

  • eBay Inc. is poised to benefit from its Focus category and Caramel acquisition, but macroeconomic uncertainties may hinder revenue growth.
  • eBay's FY2024 revenue grew 2% YoY, driven by higher gross merchandise volume, but offset by a reduced take rate due to foreign exchange fluctuations.
  • Operating margins increased to 22.5% in FY2024 but are expected to face pressure in FY2025 due to higher depreciation, UK shipping, and M&A activities.
  • eBay trades at a slight discount to its historical P/E ratio, with limited upside potential amid macroeconomic challenges, particularly in Europe, warranting a cautious near-term outlook.

Business on Wall Street in Manhattan

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Investment thesis

eBay Inc. (NASDAQ:EBAY) is expected to benefit from the Focus category and recent acquisition in the coming quarters. However, the macroeconomic uncertainty in some of its regions should negatively impact the revenue growth of

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