Zinger Key Points
- eBay shares fell after soft Q1 guidance despite beating Q4 expectations.
- Analysts revised price targets, with some raising and others lowering estimates.
- Get 5 stock picks identified before their biggest breakouts, identified by the same system that spotted Insmed, Sprouts, and Uber before their 20%+ gains.
eBay Inc. EBAY shares are trading lower on Thursday following fourth-quarter results and soft first-quarter revenue guidance reported on Wednesday.
The company reported earnings per share of $1.25, which beat the analyst consensus estimate of $1.20, and revenue of $2.579 billion marginally exceeded the analyst consensus estimate of $2.571 billion.
The company sees first-quarter adjusted EPS of $1.32-$1.36, versus the $1.33 estimate, and revenue of $2.52 billion-$2.56 billion, versus the $2.59 billion estimate.
Needham analyst Bernie McTernan reiterated a Buy rating and a price target of $72.
The analyst writes that fourth-quarter results slightly exceeded his expectations. Guidance for 2025 led to minor downward adjustments to his estimates.
eBay continues to outperform other marketplace peers in the coverage, marking its third consecutive quarter of positive gross merchandise value (GMV) growth despite a challenging macroeconomic environment, especially in the U.K. and Germany, adds the analyst.
The analyst now expects GMV growth to remain flat in 2025 vs. previous projection of modest growth owing to a greater foreign exchange headwind.
McTernan says that eBay's core business remains strong, with focus categories growing 6% year-over-year in the fourth quarter, reinforcing the company's path toward sustainable and profitable growth.
As a result, the analyst lowered 2025 estimates for revenue, GMV, and adjusted EBITDA by 0.3%, 1.6%, and 2.4%, respectively, reflecting broader macroeconomic uncertainty, potential tariff impacts, and short-term revenue pressure from the U.K. C2C initiative.
Several analysts revised the price forecast on the stock:
- Benchmark analyst Daniel Kurnos maintained a Buy rating and raised the price forecast from $65 to $75.
- Stifel analyst Mark Kelley kept the Hold rating and lowered the price forecast from $64 to $63.
- Barclays analyst Ross Sandler retained an Overweight rating and boosted the price forecast from $64 to $72.
- B of A Securities analyst Justin Post reiterated a Neutral rating and slashed the price forecast from $72 to $71.
- Wells Fargo analyst Ken Gawrelski maintained an Equal-Weight and raised the price forecast from $61 to $64.
- JP Morgan analyst Doug Anmuth retained a Neutral rating and raised the price forecast from $58 to $60.
Investors can gain exposure to the stock via ProShares Online Retail ETF ONLN and Global X E-commerce ETF EBIZ.
Price Action: EBAY shares are down 6.36% at $64.75 at the last check Thursday.
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