eBay Highlights
- Adjusted EPS from continuing operations is $1.18, beating estimates of $1.13
- Net revenue reached $2.57 billion, up 1.3% year-over-year, exceeding the estimate of $2.53 billion
- Active buyers remained constant at 132 million, just above the estimate of 131.8 million
- Gross merchandise volume (GMV) increased by 1.2% year-over-year to $18.42 billion, surpassing the estimate of $18.09 billion
- US GMV rose by 1.1% year-over-year to $8.80 billion, higher than the $8.68 billion estimate
- International GMV also saw a 1.1% year-over-year increase to $9.62 billion, beating the estimate of $9.41 billion
- Free cash flow was $278 million, a major improvement from the negative $217 million in the same period last year but below the $525 million estimate
- Third-quarter net revenue is forecasted to be between $2.50 billion and $2.56 billion, with an estimate of $2.54 billion
- eBay highlights successful GMV growth driven by strategic initiatives and robust AI capabilities
- Analyst ratings: 9 buys, 22 holds, and 1 sell
Ebay Inc on Smartkarma
Analyst coverage of eBay Inc on Smartkarma shows positive sentiment from top independent analysts like Baptista Research and Value Investors Club. Baptista Research highlights eBay’s strong operational resilience in Q1 2024, with robust performance in the face of global economic challenges. The company showcased a flat gross merchandise volume of $18.6 billion, revenue growth exceeding 2% at $2.56 billion, a 30.3% non-GAAP operating margin, and a 13% increase in non-GAAP earnings per share to $1.25.
Value Investors Club views eBay as having the potential to become a trillion-dollar AI powerhouse in e-commerce, offering anti-inflationary savings and fraud risk elimination. The company is seen as undervalued with high growth potential compared to competitors. Both research reports point towards eBay’s strategic investments, highlighting the significance of AI and product enhancement in driving future growth and positioning the company for success.
A look at Ebay Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Looking at the Smartkarma Smart Scores, the long-term outlook for eBay Inc appears promising. With a Growth score of 4, the company is well-positioned for future expansion and development. Additionally, both Resilience and Momentum scores of 4 indicate a sturdy and consistently performing business model, which bodes well for its sustainability and competitive edge in the market.
While the Value score is at 2, suggesting that the stock may not be undervalued relative to its intrinsic worth, the Dividend score of 3 indicates that the company offers a decent dividend payout to its shareholders. Overall, eBay Inc, a prominent player in the online trading community, seems to have a favorable outlook for the long term based on the Smartkarma Smart Scores.
### eBay Inc. operates an online trading community. The Company’s service is used by buyers and sellers for the exchange of products and services such as coins, collectibles, computers, memorabilia, stamps and toys, as well as concert and sporting tickets. eBay also offers, through a subsidiary, secure online payment services. ###
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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