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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 negatively impacted by a softer-than-expected profit forecast for Q4, despite Q3 sales and earnings beating Wall Street's forecasts. Operating income margins declined last quarter, raising concerns. The company's cautious guidance and 2026 outlook also weighed on investor sentiment. Additionally, eBay's gross margins continue to erode, despite AI initiatives and technology improvements being incremental, not transformative. The company returned $757 million to stockholders in Q3, including $625 million of share repurchases, a positive event that reduces outstanding shares.

1.c. Company Highlights

2. eBay's Q3 2025 Earnings: A Strong Performance

eBay reported a robust financial performance in Q3 2025, with revenue growing over 8% to $2.82 billion, and non-GAAP earnings per share increasing by 14% year-over-year to $1.36, beating analyst estimates of $1.33. The company's non-GAAP operating income grew 9% year-over-year to $781 million, and its non-GAAP operating margin was 27.1%, down 10 basis points year-over-year. Gross merchandise volume (GMV) grew 8% to $20.1 billion, driven by focus categories and U.S. market strength.

Publication Date: Oct -31

📋 Highlights
  • Strong GMV & Revenue Growth: Q3 GMV rose 8% to $20.1B; revenue grew 8% to $2.82B, driven by focus categories and U.S. market performance.
  • Focus Categories Outperform: Collectibles (15%+ GMV growth), Fashion, and P&A (1+ point contribution) led overall GMV acceleration, outperforming non-focus areas by 11pp.
  • eBay Live Surge: GMV run rate surged 5x YoY, with consistent growth in viewers, watch time, and sold items, signaling live commerce momentum.
  • AI & Tech Investments Pay Off: AI-driven "Magical Listing" tool activated 300M+ items, and 10M+ sellers adopted it, boosting listings efficiency and seller satisfaction.
  • 2026 Guidance Confident: Anticipates 4-6% GMV and 8-10% revenue growth in Q4, with 2026 planning for narrow GMV-revenue gaps despite de minimis changes and vehicle business headwinds.

Growth Drivers

The company's focus categories, such as collectibles, fashion, and motor parts and accessories, drove GMV growth, with a 15% increase year-over-year. eBay Live, the company's live shopping platform, continued to build momentum, with a 5x year-over-year increase in GMV run rate. The company's investments in artificial intelligence (AI) have enabled it to improve the selling experience on eBay, with over 10 million sellers using the magical listing tool and over 300 million items augmented leveraging AI.

Valuation and Outlook

eBay's current valuation multiples, including a P/E Ratio of 17.5 and an EV/EBITDA of 15.22, suggest that the market has priced in a moderate growth outlook. However, with the company's expected revenue growth of 8-10% in Q4 2025 and 5.1% in 2026, as well as its continued investments in AI and other growth initiatives, there is potential for further upside. The company's dividend yield of 1.36% and free cash flow yield of 4.08% also provide a relatively attractive return profile.

Key Initiatives and Future Prospects

eBay is focused on driving growth through various initiatives, including the expansion of eBay Live, the development of new features and functionalities, and investments in product development, such as shipping solutions and vehicles. The company is also working on bringing agentic commerce to buyers, allowing them to search via natural language and providing more discovery opportunities. With a strong track record of execution and a solid financial position, eBay is well-positioned to drive long-term growth and create value for shareholders.

3. NewsRoom

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This Little-Known eBay Competitor Is Starting To Heat Up: Momentum Score Spikes

Dec -02

Source: feeds.benzinga.com

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The Big 3: EBAY, WMT, META

Nov -26

Source: youtube.com

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eBay's Stock Price Near Important Elliott Wave Support

Nov -25

Source: seeitmarket.com

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French prosecutor opens probe on Ebay over suspicion of sale of illicit goods

Nov -25

Source: reuters.com

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Catalyst Funds Management Pty Ltd Sells 22,145 Shares of eBay Inc. $EBAY

Nov -20

Source: defenseworld.net

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Columbia Contrarian Core Fund Q3 2025 Performance Review

Nov -18

Source: seekingalpha.com

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Nearly Nine in Ten Consumers Plan to Maintain or Increase Spending on Pre-loved Goods, Signaling Sustained Momentum for the Circular Economy

Nov -18

Source: prnewswire.com

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Nearly Nine in Ten Consumers Plan to Maintain or Increase Spending on Pre-loved Goods, Signaling Sustained Momentum for the Circular Economy

Nov -18

Source: prnewswire.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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Quality: 6.9

Yield: 3.0

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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

82.13$

Current Price

82.13$

Potential

-0.00%

Expected Cash-Flows