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.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free 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
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market TodaySHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Selling Your Haunted House? What You Have to Tell Buyers (and What You Don’t)You don’t need ghosts to spook buyers, sometimes a home’s past is enough. Here’s what sellers should know about disclosure laws, pricing and perception when a property has a haunted history.
-
Stocks Hit Fresh Highs Ahead of the Fed As Earnings Pump Optimism: Stock Market Today
SHW and UNH were two of the best Dow Jones stocks Tuesday, thanks to solid earnings reports, and MSFT closed with a $4 trillion market cap.
-
Targa Resources, Take-Two Interactive, Boston Scientific: Why Experts Rate These Stocks at Strong BuyWall Street is highly bullish on these three high-quality stocks.
-
Debunking Three Myths About Defined Outcome ETFs (aka Buffered ETFs)Defined outcome ETFs offer a middle ground between traditional equity and fixed-income investments, helping provide downside protection and upside participation.
-
This Is Why Judge Judy Says Details Are Important in Contracts: This Contract Had HolesA couple's disastrous experience with reclaimed wood flooring led to safety hazards and a lesson in the critical importance of detailed contracts.
-
US-China Trade Hopes Send Stocks to New Highs: Stock Market TodayApple and Microsoft are on track to join Nvidia in the $4 trillion market cap club.
-
A Lesson From the School of Rock (and a Financial Adviser) as the Markets Go Around and AroundIt's hard to hold your nerve during a downturn, but next time the markets take a tumble, remember this quick rock 'n' roll tutorial and aim to stay invested.
-
I'm a Financial Pro: This Is How You Can Guide Your Heirs Through the Great Wealth TransferFocus on creating a clear estate plan, communicating your wishes early to avoid family conflict, leaving an ethical will with your values and wisdom and preparing them practically and emotionally.
-
To Reap the Full Benefits of Tax-Loss Harvesting, Consider This Investment Strategist's StepsTax-loss harvesting can offer more advantages for investors than tax relief. Over the long term, it can potentially help you maintain a robust portfolio and build wealth.
