eBay stock surged 10% after collaboration with Meta, aiming to boost GMV, revenue growth positive.

From Nasdaq: 2025-01-09 23:06:12

eBay stock price surged 10% after Meta announced a collaboration allowing certain eBay listings on Facebook Marketplace. eBay’s GMV fell from $87.4 billion in 2021 to $73.2 billion in 2023 due to economic challenges but saw a recovery in 2024. The move with Meta aims to boost GMV further. eBay stock rose 45% in 2024, outperforming the S&P 500 index, thanks to a rise in P/S ratio, revenues, and share repurchases.

eBay’s revenue growth is driven by focus categories like auto parts, collectibles, and handbags. The company targets AI for personalized recommendations and has seen higher GMV and take rate recently. Despite facing competition from Amazon, Walmart, and others, eBay’s operating margin declined from 24% in 2022 to 21.3% now, impacting adjusted net income. Returns for eBay stock have been volatile, with annual returns ranging from -36% to 45% over recent years. Trefis estimates eBay’s valuation at $60 per share, 13% below the current market price of $69.

Invest with Trefis for market-beating portfolios and price estimates. The views expressed are of the author and may differ from Nasdaq, Inc. eBay’s returns show 48% since the start of 2024, outperforming the S&P 500. The Trefis Reinforced Value Portfolio has provided significant returns since the end of 2016.



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