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1. Company Snapshot

1.a. Company Description

eBay Inc.operates marketplace platforms that connect buyers and sellers in the United States and internationally.The company's Marketplace platform includes its online marketplace at ebay.com and the eBay suite of mobile apps.


Its platforms enable users to list, buy, sell, and pay for items through various online, mobile, and offline channels that include retailers, distributors, liquidators, import and export companies, auctioneers, catalog and mail-order companies, directories, search engines, commerce participants, shopping channels, and networks.The company was founded in 1995 and is headquartered in San Jose, California.

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1.b. Last Insights on EBAY

eBay's recent performance was driven by robust Q4 2025 and Q1 2026 earnings, with revenue growth of 15% and 19%, respectively. The acquisition of Depop, a platform focused on collectibles, auto parts, and fashion, has bolstered sales momentum. Additionally, advertising revenue grew double digits year-over-year, offering a high-margin growth lever. The company's share repurchase program, including $500 million in Q1 2026, has also contributed to its performance. eBay's Gross Merchandise Volume (GMV) grew 10% and 18% in Q4 2025 and Q1 2026, respectively. (Source: eBay's quarterly earnings reports)

1.c. Company Highlights

2. eBay Q1 2026: Robust Growth Amid Uncertainty

eBay delivered a 17% revenue rise to $3.09 billion, with a 13.9% take rate, and a 29.3% non‑GAAP operating margin, up 1 ppt YoY. Non‑GAAP EPS climbed 21% to $1.66, topping consensus of $1.58. The stock trades near a 22.7× P/E, reflecting a 14.7% ROIC and a 10.5× P/B, underscoring solid profitability.

Publication Date: 07:20

📋 Highlights
  • Exceptional Q1 Financial Performance:: GMV surged 14% to $22.2B, revenue grew 17% to $3.09B, and non-GAAP EPS rose 21% to $1.66.
  • Strategic Categories Drive 70% GMV Growth:: Collectibles jumped 24%, aided by a $16M+ Pokémon card sale and 30M AI-powered card scans.
  • C2C Outperforms B2C in Key Markets:: U.S., U.K., and Germany saw double-digit C2C GMV growth, with Motors/P&A posting strongest YoY growth since 2021.
  • Live Commerce Accelerates:: eBay Live GMV hit 8x higher YoY, while AI tools boosted listings by 50% and seller satisfaction to 95%.
  • Strong Cash Flow & Shareholder Returns:: Free cash flow reached $898M, $639M returned via buybacks/dividends, and $5.1B cash reserves supported $2B repurchase target.

Revenue & Take Rate

The 17% organic FX‑neutral revenue growth, driven by a 13.9% take rate, signals strong seller monetization. Advertising revenue surged 27% to $581 million, capturing over 2.6% of GMV, while the 74.6% non‑GAAP gross margin indicates efficient cost management, especially in payment processing.

GMV & Category Performance

GMV climbed 14% to $22.2 billion, with focus categories—collectibles, motors, electronics, fashion—accounting for 70% of volume. Collectibles alone grew 24% thanks to high‑profile sales like the Pokémon Pikachu Illustrator, while eBay Motors posted its best YoY GMV growth since 2021, powered by the guaranteed FIT program.

Focus Categories Surge

Collectibles drove a 24% GMV increase, supported by AI‑powered card scanning that surpassed 30 million scans, boosting seller confidence. The AI feature, coupled with a 50% rise in new listings, showcases eBay’s commitment to leveraging technology for niche markets and sustaining premium margins.

C2C & International Growth

Consumer‑to‑consumer activity grew double‑digit across the U.S., U.K., and Germany, outpacing B2C. International GMV expanded 2% FX‑neutral, with a 70‑basis‑point FX tailwind. Export acceleration and a pending Depop acquisition are expected to add ~1 pp to FX‑neutral GMV growth in 2026.

Live Commerce & AI Innovation

eBay Live’s GMV run rate jumped 8× YoY, with live shopping now a key growth lever in collectibles and fashion. The magical listing experience, an AI‑driven tool, increased listings per lister by 50% and drove double‑digit GMV growth per seller, reinforcing eBay’s agentic commerce strategy.

Financial Health & Shareholder Returns

Cash and equivalents stood at $5.1 billion, with $639 million returned to shareholders via buybacks and dividends. Free cash flow reached $898 million, while operating cash inflows hit $934 million, positioning eBay to fund a $2 billion share repurchase program and future capital expenditures of 4‑5% of revenue.

Outlook & Guidance

For Q2, eBay projects 8‑10% FX‑neutral GMV and revenue growth, with non‑GAAP EPS between $1.46 and $1.51. Full‑year guidance targets 7‑7.5% GMV growth, 9‑11% non‑GAAP operating income expansion, and a 17.5% tax rate, reflecting confidence in sustained top‑line momentum amid macro uncertainty. [Alford]

3. NewsRoom

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eBay Inc. (EBAY) Q1 2026 Earnings Call Transcript

04:01

Source: seekingalpha.com

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Stock Market Today, April 30: Amazon Rises on AWS AI Growth and an Earnings Beat

Apr -30

Source: fool.com

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eBay: Soaring GMV At A Reasonable Price

Apr -30

Source: seekingalpha.com

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eBay's strong first half overshadowed by second-half growth concerns

Apr -30

Source: proactiveinvestors.com

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eBay's strong first half overshadowed by second-half growth concerns

Apr -30

Source: proactiveinvestors.com

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eBay Inc (EBAY) Q1 2026 Earnings Call Highlights: Strong Growth Amidst Global Challenges

Apr -30

Source: gurufocus.com

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eBay (EBAY) Reports Q1 Earnings: What Key Metrics Have to Say

Apr -29

Source: zacks.com

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eBay (EBAY) Beats Q1 Earnings and Revenue Estimates

Apr -29

Source: zacks.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.40%)

6. Segments

Marketplace

Expected Growth: 14.4%

eBay’s online marketplace growth is driven by increasing adoption of e-commerce, rising demand for second-hand goods, and expanding presence in emerging markets, particularly in Asia and Latin America.

7. Detailed Products

eBay Marketplace

An e-commerce platform that enables individuals and businesses to buy and sell new and used goods.

StubHub

An online ticket marketplace that enables users to buy and sell tickets to sports, concerts, and other events.

eBay Classifieds

A platform that enables users to buy and sell goods and services locally.

eBay Advertising

A platform that enables businesses to advertise their products and services on eBay.

PayPal

A digital payment service that enables users to send and receive payments online.

eBay Shipping Labels

A service that enables sellers to print shipping labels and track packages.

eBay Seller Hub

A platform that enables sellers to manage their eBay business, including inventory management and order fulfillment.

8. eBay Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

eBay's business model is based on providing a unique platform for buyers and sellers to interact, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

eBay's customers have some bargaining power due to the availability of alternative platforms, but the company's strong brand and large user base mitigate this power.

Bargaining Power Of Suppliers

eBay's suppliers are primarily individual sellers, who have limited bargaining power due to the company's dominant market position.

Threat Of New Entrants

While there are barriers to entry in the e-commerce market, new entrants can still emerge, but eBay's established brand and large user base make it difficult for new entrants to gain traction.

Intensity Of Rivalry

The e-commerce market is highly competitive, with eBay facing intense rivalry from established players like Amazon and emerging players like Facebook Marketplace.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 55.07%
Debt Cost 4.27%
Equity Weight 44.93%
Equity Cost 10.51%
WACC 7.07%
Leverage 122.59%

11. Quality Control: eBay Inc. passed 6 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

103.48$

Current Price

103.48$

Potential

-0.00%

Expected Cash-Flows