eBay stock has risen 60% this year, but Q4 guidance misses estimates

From Nasdaq: 2024-12-02 01:04:16

eBay stock has risen 50% this year due to increased GMV of $87.4 billion in 2021, although it declined to $73.2 billion in 2023 due to economic challenges. Revenue growth has been driven by focus categories, leading to higher GMV. However, Q4 guidance missed estimates, impacting stock price. Operating margin fell to 21.3% from 24% in 2022, impacting net income.

eBay’s stock has increased by 60%, with a rise in P/S ratio, revenues, and share repurchases contributing to the growth. The company’s focus on certain categories and AI has helped drive sales. Despite outperforming the market this year, eBay’s stock has been volatile in recent years compared to the S&P 500. Current valuation indicates the stock is fully priced and facing risks from inflation spike and Fed actions.

Investors should consider eBay’s peers and market comparisons to assess its valuation. The company’s stock has seen a 50% return YTD, outpacing the S&P 500. Trefis’ Reinforced Value Portfolio has provided a substantial return over the years. With uncertainties in the macroeconomic environment, eBay’s performance may be impacted by factors like inflation and Fed actions.



Read more at Nasdaq: What’s Next For eBay Stock?