eBay Inc. EBAY shares were trading slightly lower on Thursday.
The company released its first-quarter results on Wednesday with quarterly earnings of $1.38 per share, which beat the analyst consensus estimate of $1.34.
Quarterly revenue came in at $2.58 billion, beating the analyst consensus estimate of $2.55 billion and increasing from $2.56 billion in the same period last year.
Here are the analysts’ take on the stock:
- Needham analyst Bernie McTernan reiterated the Buy rating on the stock, raising the price forecast from $72 to $78.
- JP Morgan analyst Doug Anmuth reiterated the Neutral rating on the stock, raising the price forecast from $54 to $60.
- BofA Securities reiterated the Neutral rating on eBay, with a price forecast of $71.
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Needham: Mcternan noted that GMV exceeded expectations in Q1, beating the high end of guidance and growing 2% in constant currency, with momentum improving in March and April.
According to the analyst, eBay’s strength was attributed to its focus on differentiated, non-new, in-season products, with key categories growing by 6% in the quarter.
McTernan writes that this performance supports a premium valuation, though future stock gains will likely depend on upward estimate revisions.
The analyst noted that eBay is continuing to invest in AI and machine learning to boost efficiency, with a strong focus this year on categories such as fashion, collectibles, and parts and accessories.
In line with its AI-driven efforts, the company recently introduced a new fashion feature in the U.S. and U.K. that replaces static browse pages with dynamic, theme-based feeds.
JP Morgan: The analyst noted that eBay is doubling down on its core fashion business, launching a new AI-powered shopping experience in the U.S. and U.K., along with introducing pre-loved apparel as a new focus category in the U.S.
On the geographic front, the U.K. C2C initiatives—such as Managed Shipping and eBay Balance—have shown strong growth, exceeding internal expectations.
Additionally, the buyer protection fee introduced in February helped narrow the monetization gap.
Despite ongoing macroeconomic challenges and U.S. tariff uncertainty, eBay remains focused on achieving low-single-digit FX-neutral GMV growth and maintaining strong shareholder returns, the analyst writes.
BofA Securities: The analyst stated that 2025 GMV and revenue estimates were raised by 2% and 1%, respectively, reflecting a shift in foreign exchange from a headwind to a 100 basis point tailwind.
The non-GAAP EPS estimate for 2025 was also increased to $5.37 from $5.32.
For 2026, the analyst projects a 9% two-year average growth, with share buybacks playing a key role in driving performance.
Price Action: EBAY shares are trading lower by 0.35% to $67.92 at last check Thursday.
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