eBay stock increased 45% YTD, but facing competition and softness in advertising

From Nasdaq: 2024-12-03 10:03:00

eBay’s share price has increased 44.8% YTD, outperforming the Retail-Wholesale sector but underperforming the Internet – Commerce industry. Peers like Booking Holdings, Amazon, and Travelzoo have seen higher returns. eBay’s first-party advertising revenues grew by 14% in Q3 2024, but active buyers only increased by 1% YOY.

The company is expanding its portfolio with innovations like Evo, enhancing the customer experience. eBay’s geo-specific investments and acquisitions like Golbin are driving market reach. However, competition and softness in advertising products pose challenges. eBay’s positive guidance for Q4 2024 includes revenue expectations of $2.53-$2.59 billion.

eBay’s near-term prospect remains steady, with earnings expected to grow by 13.92% YOY in 2024. The company has a Zacks Rank #3 (Hold), indicating a fair valuation. eBay’s shares are currently fairly priced with a Value Score of B. Investors should wait for a better entry point. Consensus estimates show steady growth in revenues for 2024.

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