Update shared on16 Aug 2025
Fair value Increased 5.11%eBay’s analyst price target has increased to $87.63, reflecting better-than-expected Q2 results, accelerating growth in key categories, technology investment, and higher EPS estimates, though some caution remains after the share price rally.
Analyst Commentary
- Better-than-expected Q2 results, including 7% net income growth and 6% revenue increase, supported by accelerated growth in focus categories and enhanced platform tools such as live commerce.
- Continued investment in new technology solutions and generative AI models fueling optimism about margin expansion and long-term competitive positioning.
- Bullish analysts raise price targets based on improved channel checks, favorable currency movements, and lower perceived recession risk compared to previous outlooks.
- Upward revisions to FY25 and FY26 EPS estimates, and increased confidence that eBay is taking market share as macroeconomic conditions improve.
- Bearish analysts downgrade or caution after a significant share price run-up, prompting valuation concerns despite improved financial and operational performance.
What's in the News
- eBay has been sued by the Trump Organization, along with Amazon and Walmart, for allegedly allowing the sale of counterfeit merchandise bearing Trump trademarks on its platform (CNBC).
- eBay repurchased 8.8 million shares (1.91% of shares outstanding) for $625 million in Q2 2025, bringing total buybacks since February 2022 to 131.8 million shares (25.72%) for $6.95 billion.
- The company has launched "Secure Purchase," a new solution to streamline and secure vehicle transactions on its platform, providing services like payment, financing, registration, and ownership transfer in one experience.
- eBay provided Q3 2025 earnings guidance, projecting revenue between $2.69-$2.74 billion and diluted GAAP EPS between $0.97-$1.02.
- The company urged shareholders to vote against proposals to lower the threshold for calling special meetings from 20% to 10% and to amend director resignation policies, arguing their current governance practices already align with market standards.
Valuation Changes
Summary of Valuation Changes for eBay
- The Consensus Analyst Price Target has risen from $83.37 to $87.63.
- The Consensus Revenue Growth forecasts for eBay has risen from 5.1% per annum to 5.4% per annum.
- The Future P/E for eBay has risen slightly from 17.52x to 18.33x.
Disclaimer
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