eBay Inc (NASDAQ:EBAY) stock is 3.4% lower ahead of the open, following a bear note from Jefferies.
Analysts downgrade shares of the online commerce cite to Underperform from Hold and slash the stock's price target.
EBAY's prospects improve, driven by its expanding product portfolio. However, slow active user growth and intense competition are concerning.
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eBay (EBAY) reported earnings 30 days ago. What's next for the stock?
The stock price of eBay (NYSE: EBAY) has seen a solid 50% rise this year, driven by a rebound in gross merchandise volume. The company saw higher GMV of $87.4 billion in 2021, but it has declined since then to $73.2 billion in 2023, due to a challenging macroeconomic environment.
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Amid market optimism, I recommend rotating into value-oriented stocks like eBay, which has shown strong Q3 results and a promising outlook. eBay's Q3 earnings revealed a re-acceleration in GMV and revenue, boosting my confidence in its short-term potential and leading me to rate it a buy. Despite GMV and revenue accelerating in Q3, and the company guiding to continued GMV acceleration in Q4, shares of eBay slid post-earnings, creating a well-timed buying opportunity.
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Based on my 10-year EV-to-FCF-multiple-adjusted DCF model, eBay stock is nearly 2% overvalued at present. The company achieved strong Q3 results, but management outlined Q4 and full-year 2024 guidance under the consensus estimates at the time. EBAY is unlikely to deliver short-, medium-, or long-term alpha. Unless management focuses more on the dividend yield, investors are likely to divert capital elsewhere over time.
EBay (EBAY) shares tumbled Thursday, a day after the online marketplace gave weaker-than-expected guidance for the key holiday shopping period.