eBay's Earnings Expectations Amid Market Weakness
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy EBAY?
Source: NASDAQ.COM
eBay Inc's stock fell 3.92% as it hit a 20-day low, reflecting broader market trends with the Nasdaq-100 down 1.37% and the S&P 500 down 0.83%.
Analysts expect eBay to report earnings of approximately $1.35 per share and revenue of around $2.87 billion on February 18, aligning with management's guidance for high-single-digit revenue growth. This comes amid cautious investment advice due to uneven consumer spending and fierce competition, suggesting that investors should be cautious about purchasing before the earnings report.
The upcoming earnings report is crucial for eBay, as it will provide insights into the company's resilience amid economic pressures and its evolving business model focused on advertising revenue growth.
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Analyst Views on EBAY
Wall Street analysts forecast EBAY stock price to rise
8 Analyst Rating
2 Buy
5 Hold
1 Sell
Hold
Current: 79.950
Low
60.00
Averages
95.00
High
112.00
Current: 79.950
Low
60.00
Averages
95.00
High
112.00
About EBAY
eBay Inc. is a global commerce company. The Company's technology empowers buyers and sellers in more than 190 markets around the world. The Company's business includes its online marketplace located at www.ebay.com and its localized counterparts, its off-platform marketplaces and its suite of mobile apps. It provides a number of features for its sellers and buyers that align with its approach of leveraging technology, including generative AI, to enhance the marketplace experience for its customers. For sellers, the Company is focused on simplifying their business processes to help drive their sales. The Company offers the eBay International Shipping program for sellers in the United States. For buyers, it is changing the way they find inventory through discovery, personalization and other experiences. It launched Explore, an AI-powered shopping feed enabling users to browse a list of personalized recommendations based on their interests, style preferences, and sizes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
eBay Q4 Earnings Expectations and Dividend Insights
- Earnings Release Announcement: eBay is set to release its Q4 earnings after the market closes on February 18, with analysts forecasting earnings of $1.35 per share, indicating a steady improvement in the company's profitability compared to $1.25 per share last year.
- Revenue Growth Expectations: According to Benzinga Pro, eBay's quarterly revenue is expected to reach $2.87 billion, up from $2.58 billion in the previous year, reflecting the company's competitive position and sales growth potential in the market.
- Analyst Rating Adjustment: UBS analyst Stephen Ju has maintained a Neutral rating on eBay while lowering the price target from $95 to $93, indicating a cautious outlook on the company's future performance that may affect investor confidence.
- Dividend Yield Analysis: With an annual dividend yield of 1.45% and a quarterly dividend of $0.29, investors aiming for $500 monthly in dividends would need to invest approximately $413,501, highlighting the attractiveness and investment threshold of the company's dividend policy.
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- Dividend Yield: The forward yield of 1.51% provides investors with a relatively stable return, further attracting income-seeking investors and enhancing the company's appeal in the market.
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- Earnings Release Announcement: eBay is set to release its Q4 earnings after the market closes on February 18, with analysts forecasting earnings of $1.35 per share, indicating a steady improvement in the company's profitability compared to $1.25 per share last year.
- Revenue Growth Expectations: According to Benzinga Pro, eBay's quarterly revenue is expected to reach $2.87 billion, up from $2.58 billion in the previous year, reflecting the company's competitive position and sales growth potential in the market.
- Analyst Rating Adjustment: UBS analyst Stephen Ju has maintained a Neutral rating on eBay while lowering the price target from $95 to $93, indicating a cautious outlook on the company's future performance that may affect investor confidence.
- Dividend Yield Analysis: With an annual dividend yield of 1.45% and a quarterly dividend of $0.29, investors aiming for $500 monthly in dividends would need to invest approximately $413,501, highlighting the attractiveness and investment threshold of the company's dividend policy.
See More
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- Dividend Increase: eBay has announced a quarterly dividend increase from $0.29 to $0.31 per share, representing a 6.9% rise, which reflects the company's stable cash flow and boosts investor confidence, likely leading to a positive impact on stock price.
- Dividend Yield: The forward yield of 1.51% provides investors with a relatively stable return, further attracting income-seeking investors and enhancing the company's appeal in the market.
- Performance Outlook: eBay has set a GMV growth target of 10% to 12% for Q1 2026, indicating the company's commitment to advancing its C2C strategy, particularly following the acquisition of Depop, which is expected to further expand market share.
- Acquisition Strategy: eBay plans to acquire Depop for $1.2 billion in cash, a strategic move that will not only enhance its competitiveness in the second-hand market but also drive user growth on the platform, thereby improving overall business performance.
See More
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- Investment Challenges: The beginning of the year presents additional complexities for investors beyond just AI concerns.
See More
eBay Reports Q4 Earnings Beat and Acquires Depop for $1.2B
- Strong Performance: eBay's Q4 net revenue reached $3 billion, a 15% year-over-year increase that exceeded market expectations by at least $100 million, showcasing the company's robust performance driven by holiday shopping events and AI initiatives, thereby reinforcing its leadership in the e-commerce sector.
- Increased Shareholder Returns: The company announced an increase in its first-quarter cash dividend from $0.29 to $0.31 per share, payable on March 20, which not only boosts shareholder confidence but also reflects the improvement in the company's financial health.
- Strategic Acquisition: eBay is acquiring the secondhand clothing marketplace Depop from Etsy for $1.2 billion in cash, aiming to capture the Gen Z and Millennial customer base, thereby expanding its market share and enhancing brand appeal.
- Optimistic Outlook: eBay expects Q1 net revenue to be between $3 billion and $3.05 billion, surpassing analyst expectations, indicating the company's growth potential and market confidence in the upcoming quarters.
See More
U.S. Stock Futures Decline as Fed Meeting Minutes Reveal Rate Disagreements
- Fed Meeting Minutes Analysis: The January meeting minutes from the Federal Reserve revealed significant disagreements among officials regarding future interest rates, with some discussing potential rate hikes to combat persistent inflation, yet the market maintains an outlook for two rate cuts this year, reflecting concerns over economic slowdown.
- Oil Price Surge Factors: Oil prices rose by 1.20% to $65.83 per barrel due to stalled indirect nuclear talks between Iran and the U.S., which could impact overall economic conditions and consumer spending.
- Bond Yield Dynamics: The 10-year Treasury bond yield stood at 4.10%, while the two-year bond yield was at 3.47%, indicating a cautious market sentiment regarding future interest rate policies, which may influence investors' asset allocation decisions.
- Market Performance Overview: The Dow Jones fell by 0.12%, the S&P 500 dropped by 0.08%, and the Nasdaq 100 decreased by 0.08%, reflecting uncertainty in the market regarding economic prospects, particularly in consumer and technology stocks.
See More
Stock Movers: Carvana, DoorDash, Figma, Etsy, eBay, Walmart, and Others
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- Investor Concerns: Investors are closely monitoring the rise in oil prices.
- Geopolitical Tensions: The increase in oil prices is linked to ongoing tensions with Iran.
- Market Reactions: The combination of these factors is influencing investor sentiment and market performance.
See More
