eBay (EBAY) stock is moving lower Thursday after the e-commerce company beat top- and bottom-line expectations for its fourth quarter but issued a mixed outlook for the current quarter.
In the three months ending December 31, eBay's revenue increased 0.7% year over year to $2.6 billion. Earnings per share (EPS) rose 16.8% from the year-ago period to $1.25.
"eBay delivered strong results in the fourth quarter, as we met or exceeded expectations across our key financial metrics," said Chief Financial Officer Steve Priest.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
eBay also said Gross Merchandise Volume (GMV) increased 4% year over year to $19.3 billion, which also beat analysts' expectations of $19.1 billion.
"We created a solid foundation to build upon in 2025," Priest added, "and our outlook reflects our confidence in eBay's ability to drive sustainable, long-term growth."
The results beat analysts' expectations. Wall Street was anticipating revenue of $2.57 billion and earnings of $1.20 per share, according to Investor's Business Daily.
For its first quarter, eBay said it expects to achieve revenue in the range of $2.52 billion to $2.56 billion, GMV in the range of $18.3 billion to $18.6 billion and earnings in the range of $1.32 to $1.36.
The midpoints of these ranges were mixed compared with analysts' expectations of revenue of $2.59 billion, GMV of $18.9 billion and earnings of $1.33 per share.
Is eBay stock a buy, sell or hold?
Following its 44.8% total return in 2024 and a 10%-plus run to start 2025, Wall Street is on the sidelines when it comes to the large-cap stock.
According to S&P Global Market Intelligence, the average analyst target price for EBAY is $61.94, which represents a discount of about 1% to current levels. Meanwhile, the consensus recommendation is Hold.
Financial services firm Needham reiterated its Buy rating and $72 price target on EBAY stock following the earnings release.
"EBAY is outperforming other marketplace peers in our coverage, posting the third consecutive quarter of positive GMV growth amid a tough macro backdrop, specifically in the UK and Germany, and management expects this growth trajectory to continue in '25E," says Needham analyst Bernie McTernan in a note this morning.
Mcternan cites 6% growth and "strong trends" in EBAY's core business, which continues "to be a strong driver for the company in their return to sustainable and profitable growth."
Related Content
-
Last Call for Fortnite Refunds: Parents Can Still File a ClaimThe FTC is sending out $126 million in refunds to families whose kids were charged for unwanted items in Fortnite — and there’s still time to file a claim.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade TalksDespite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Stock Market Today: Stocks Swing as Trump Scraps Canada Trade Talks
Despite a mid-afternoon slip, the S&P 500 and Nasdaq ended the day at new record highs.
-
Why Smart Retirees Are Ditching Traditional Financial PlansFinancial plans based purely on growth, like the 60/40 portfolio, are built for a different era. Today’s retirees need plans based on real-life risks and goals and that feature these four elements.
-
To My Small Business: Well, I've Been Afraid of Changin', 'Cause I've Built My Life Around YouWhile thinking about succession planning might feel like anticipating a landslide (here's to you, Fleetwood Mac), there are strategies you can implement to manage the uncertainty and the transition.
-
Stock Market Today: S&P 500, Nasdaq Near New HighsThe S&P 500 hasn't hit a new high since February. It's been since December for the Nasdaq.
-
The Bull Case for the Second Half of 2025This strategist sees a volatile market segueing to a strong close this year.
-
7 Essential Investing Rules We All Should KnowThe best time to start investing is right now. That's just one vital rule investors should be familiar with. Here are six more.
-
These Are the Key Tariff Issues to Watch in Coming MonthsWhile they're not dominating headlines right now, tariffs are not over. Some key dates are coming up fast that could upend markets all over again.
-
Technology Unleashes the Power of Year-Round Tax-Loss HarvestingTech advancements have made it possible to continuously monitor and rebalance portfolios, allowing for harvesting losses throughout the year rather than just once a year.
