eBay Impresses On Earnings, But Wall Street Sees Trade-Offs Ahead

Earnings season often brings surprises that can shift market dynamics, particularly as companies navigate post-pandemic economic recovery and evolving consumer behaviors. Shares of eBay Inc EBAY rallied in early trading on Thursday, after the company Wednesday reported upbeat second-quarter earnings.

EBAY shares are trading near their annual peak. Track live prices here.

The announcement came amid an exciting earnings season. Here are some key analyst takeaways.

Cantor Fitzgerald On eBay

Analyst Deepak Mathivanan maintained a Neutral rating, while raising the price target from $69 to $85.

eBay reported a revenue beat for the second quarter, with gross merchandize value (GMV) coming in 4% higher than Street estimates, Mathivanan said in a note. GMV growth was driven by "strength in focus categories including cards and collectibles," he added.

Management guided to third-quarter GMV growth of 3%-5% year-on-year, signaling that "the company is tracking towards the higher end of the FY25E guide (LSD %)," the analyst wrote. They also raised the 2025 proforma earnings growth outlook from high-single-digit to 10%-12%.

Goldman Sachs On eBay

Analyst Eric Sheridan reiterated a Sell rating, while lifting the price target from $53 to $72.

eBay reported its quarterly GMV, revenue and non-GAAP EBIT margin significantly higher than expectations, Sheridan said. Management's commentary instilled confidence in AI being a driver of a more personalized shopping experience in upcoming years, he added.

The company announced $2.5 billion in share buybacks in 2025 and raised its quarterly dividend, the analyst stated. With "consistent execution on long-term initiatives," eBay could continue generating revenue growth "above the current estimate runrate," he further wrote.

Check out other analyst stock ratings.

Needham On eBay

Analyst Bernie McTernan reaffirmed a Hold rating, while raising the price target from $78 to $95.

Growth in all of eBay's focus categories accelerated during the quarter, McTernan said. The company's revenue growth came in better than expected, despite rising expectations, he added.

"U.S. specifically performed well for the company, with the macro providing a sequential tailwind, which we assume continues into 3Q," the analyst wrote. Although the third-quarter earnings guidance was encouraging, management announced plans to reinvest in strategic initiatives, which could exert pressure on margins in the near term, he further stated.

Wedbush On eBay

Analyst Scott Devitt maintained a Neutral rating and price target of $72.

eBay's GMV grew by 6.0% year-on-year to $19.5 billion in the second quarter, beating Street expectations of 2.5%, Devitt said. Revenues came in at $2.7 billion, also topping estimates, he added.

The company's guidance reflects "potential disruptions from impending changes in the regulatory environment," the analyst wrote. Non-GAAP operating margin should be in the range of 26.6%-27.1% in the third quarter, implying year-on-year margin compression of around 320 basis points, he further stated.

EBAY Price Action: eBay shares were up 18.58% at $91.97 at the time of publication on Thursday, according to Benzinga Pro data.

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