EBay Shares Slide As Q4 Revenue Guidance Misses Expectations Despite Earnings Beat
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 31 2024
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Should l Buy EBAY?
Source: Benzinga
Financial Performance: eBay reported a 3% year-over-year revenue growth of $2.58 billion, exceeding expectations, but issued lower-than-expected guidance for the fourth quarter and fiscal year 2024, leading to a nearly 10% drop in share price.
Shareholder Returns and Future Outlook: The company returned $881 million to shareholders through buybacks and dividends, while projecting fourth-quarter revenue between $2.53 billion and $2.59 billion, below analyst consensus.
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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: 93.130
Low
60.00
Averages
95.00
High
112.00
Current: 93.130
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's Long-Term Returns Outpace Market
- Stable Compound Growth: eBay has achieved a 14.3% annual compound growth rate over the past decade, and with a 1.5% dividend policy, its total annual return reaches 15.8%, surpassing the S&P 500's 14.2% return, highlighting its robust investment value.
- Shareholder-Friendly Capital Allocation: In 2025, eBay returned approximately $3 billion to shareholders through buybacks and dividends, with its share count down by 62% since the end of 2015, indicating a focus on stable margins rather than endless expansion.
- Acquisition Brings New Opportunities: eBay's pending $12 billion acquisition of Etsy's Depop service is expected to attract millions of young users, refreshing its demographic, while management guides for 2026 GMV growth similar to last year's 6% increase.
- Clear Market Positioning: eBay focuses on connecting buyers and sellers of rare or collectible items, and despite risks from sluggish European economies and shifting trade policies, its clear market target makes it more defensible, appealing to long-term investors.
See More
eBay Outperforms S&P 500 with 15.8% Annual Return
- Return Performance: eBay has achieved a 15.8% annualized total return over the past decade, slightly surpassing the S&P 500's 14.2%, indicating its robust growth potential in the e-commerce market.
- Share Buyback Strategy: Since 2015, eBay has reduced its share count by 62% through aggressive buyback programs, which not only boosts earnings per share but also enhances shareholder confidence in returns.
- Acquisition of Younger Users: eBay's pending $12 billion acquisition of Etsy's Depop is expected to bring 56 million younger users to the platform, facilitating a demographic refresh that strengthens its market competitiveness.
- Capital Return Policy: In 2025, eBay returned approximately $3 billion to shareholders through buybacks and dividends, showcasing its shareholder-friendly capital allocation strategy and reinforcing its appeal as a long-term investment.
See More
PayPal's Growth Outlook for the Next Three Years
- Stock Decline: PayPal's stock has fallen approximately 40% over the past three years due to stagnant account and sales growth, although it currently trades at a historically low P/E ratio of nine times earnings, indicating potential undervaluation.
- Revenue Growth Constraints: Following eBay's switch to Adyen in 2018, PayPal's revenue growth faced significant throttling; while the pandemic provided temporary relief, sustaining that momentum has proven challenging amid increasing competition.
- User Growth Stagnation: From 2022 to 2025, PayPal's active accounts grew marginally from 435 million to 439 million, yet its revenue increased at a 6% CAGR, primarily driven by enhanced transaction frequency per user and effective cost management.
- Future Growth Expectations: Analysts forecast that from 2025 to 2028, PayPal's revenue and EPS will grow at CAGRs of 4% and 6%, respectively, with steady growth anticipated through the introduction of new products and services, enhancing its market position.
See More
PayPal's Growth Slows, Stock Appears Undervalued
- Growth Challenges: PayPal's stock has declined approximately 40% over the past three years due to stalled account and sales growth, although its current P/E ratio of nine times earnings suggests potential undervaluation.
- Revenue Setbacks: The loss of eBay as a payment partner in 2018 throttled PayPal's revenue growth, and while the pandemic provided temporary relief, sustaining that momentum has proven difficult amid increasing competition.
- Declining Take Rates: PayPal's transaction take rate has dropped from 2.89% in 2015 to 1.66% in 2025, primarily due to reliance on lower-margin platforms like Braintree and Venmo, which has pressured overall profitability.
- Future Outlook: Analysts expect PayPal's revenue and EPS to grow at CAGRs of 4% and 6% from 2025 to 2028, respectively, with the potential for its stock to double to over $100 in the next three years, contingent on stabilizing its profitability metrics.
See More
Buffett Teams Up with Curry for Charity Lunch Auction
- Charity Lunch Revival: Warren Buffett will host a charity lunch on June 24, 2025, in Omaha, Nebraska, featuring NBA star Stephen Curry and his wife Ayesha, aiming to raise funds through an auction to support meaningful community projects.
- Auction Details: Online bidding will open on May 7 and run through May 14, with proceeds benefiting Glide Foundation and the Eat. Learn. Play. Foundation, which focuses on childhood literacy, nutrition, and active lifestyles.
- Historical Achievements: In 2022, Buffett's lunch auction reached a record winning bid of $19 million, raising over $50 million in total over the past two decades, showcasing its significant impact and appeal in the charity sector.
- Celebrity Appeal: The event attracts numerous prominent investors, and Buffett's collaboration with Curry not only enhances the charity lunch's visibility but also offers participants a unique opportunity to engage directly with legendary figures in the investment community.
See More
This Dividend Stock Outperforms Amid Market Sell-Off
- Market Performance: Amid the broad stock market sell-off on March 26, 2026, this stock has shown remarkable resilience, indicating its potential to attract investors seeking stable returns.
- Dividend Appeal: As a dividend stock, it provides a steady cash flow, especially during turbulent market conditions, potentially serving as a safe haven for investors and enhancing its market attractiveness.
- Investor Confidence: The stock's ability to rise despite overall market pessimism may reflect investor confidence in its fundamentals, further driving its price appreciation.
- Market Strategy: This stock's performance in an uncertain market environment may prompt more investors to reassess their portfolios and consider including it as a long-term holding asset.
See More
eBay's Long-Term Returns Outpace Market
- Stable Compound Growth: eBay has achieved a 14.3% annual compound growth rate over the past decade, and with a 1.5% dividend policy, its total annual return reaches 15.8%, surpassing the S&P 500's 14.2% return, highlighting its robust investment value.
- Shareholder-Friendly Capital Allocation: In 2025, eBay returned approximately $3 billion to shareholders through buybacks and dividends, with its share count down by 62% since the end of 2015, indicating a focus on stable margins rather than endless expansion.
- Acquisition Brings New Opportunities: eBay's pending $12 billion acquisition of Etsy's Depop service is expected to attract millions of young users, refreshing its demographic, while management guides for 2026 GMV growth similar to last year's 6% increase.
- Clear Market Positioning: eBay focuses on connecting buyers and sellers of rare or collectible items, and despite risks from sluggish European economies and shifting trade policies, its clear market target makes it more defensible, appealing to long-term investors.
See More
eBay Outperforms S&P 500 with 15.8% Annual Return
- Return Performance: eBay has achieved a 15.8% annualized total return over the past decade, slightly surpassing the S&P 500's 14.2%, indicating its robust growth potential in the e-commerce market.
- Share Buyback Strategy: Since 2015, eBay has reduced its share count by 62% through aggressive buyback programs, which not only boosts earnings per share but also enhances shareholder confidence in returns.
- Acquisition of Younger Users: eBay's pending $12 billion acquisition of Etsy's Depop is expected to bring 56 million younger users to the platform, facilitating a demographic refresh that strengthens its market competitiveness.
- Capital Return Policy: In 2025, eBay returned approximately $3 billion to shareholders through buybacks and dividends, showcasing its shareholder-friendly capital allocation strategy and reinforcing its appeal as a long-term investment.
See More
PayPal's Growth Outlook for the Next Three Years
- Stock Decline: PayPal's stock has fallen approximately 40% over the past three years due to stagnant account and sales growth, although it currently trades at a historically low P/E ratio of nine times earnings, indicating potential undervaluation.
- Revenue Growth Constraints: Following eBay's switch to Adyen in 2018, PayPal's revenue growth faced significant throttling; while the pandemic provided temporary relief, sustaining that momentum has proven challenging amid increasing competition.
- User Growth Stagnation: From 2022 to 2025, PayPal's active accounts grew marginally from 435 million to 439 million, yet its revenue increased at a 6% CAGR, primarily driven by enhanced transaction frequency per user and effective cost management.
- Future Growth Expectations: Analysts forecast that from 2025 to 2028, PayPal's revenue and EPS will grow at CAGRs of 4% and 6%, respectively, with steady growth anticipated through the introduction of new products and services, enhancing its market position.
See More
PayPal's Growth Slows, Stock Appears Undervalued
- Growth Challenges: PayPal's stock has declined approximately 40% over the past three years due to stalled account and sales growth, although its current P/E ratio of nine times earnings suggests potential undervaluation.
- Revenue Setbacks: The loss of eBay as a payment partner in 2018 throttled PayPal's revenue growth, and while the pandemic provided temporary relief, sustaining that momentum has proven difficult amid increasing competition.
- Declining Take Rates: PayPal's transaction take rate has dropped from 2.89% in 2015 to 1.66% in 2025, primarily due to reliance on lower-margin platforms like Braintree and Venmo, which has pressured overall profitability.
- Future Outlook: Analysts expect PayPal's revenue and EPS to grow at CAGRs of 4% and 6% from 2025 to 2028, respectively, with the potential for its stock to double to over $100 in the next three years, contingent on stabilizing its profitability metrics.
See More
Buffett Teams Up with Curry for Charity Lunch Auction
- Charity Lunch Revival: Warren Buffett will host a charity lunch on June 24, 2025, in Omaha, Nebraska, featuring NBA star Stephen Curry and his wife Ayesha, aiming to raise funds through an auction to support meaningful community projects.
- Auction Details: Online bidding will open on May 7 and run through May 14, with proceeds benefiting Glide Foundation and the Eat. Learn. Play. Foundation, which focuses on childhood literacy, nutrition, and active lifestyles.
- Historical Achievements: In 2022, Buffett's lunch auction reached a record winning bid of $19 million, raising over $50 million in total over the past two decades, showcasing its significant impact and appeal in the charity sector.
- Celebrity Appeal: The event attracts numerous prominent investors, and Buffett's collaboration with Curry not only enhances the charity lunch's visibility but also offers participants a unique opportunity to engage directly with legendary figures in the investment community.
See More
This Dividend Stock Outperforms Amid Market Sell-Off
- Market Performance: Amid the broad stock market sell-off on March 26, 2026, this stock has shown remarkable resilience, indicating its potential to attract investors seeking stable returns.
- Dividend Appeal: As a dividend stock, it provides a steady cash flow, especially during turbulent market conditions, potentially serving as a safe haven for investors and enhancing its market attractiveness.
- Investor Confidence: The stock's ability to rise despite overall market pessimism may reflect investor confidence in its fundamentals, further driving its price appreciation.
- Market Strategy: This stock's performance in an uncertain market environment may prompt more investors to reassess their portfolios and consider including it as a long-term holding asset.
See More
