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Investing.com - Citizens has reiterated its Market Outperform rating and $115.00 price target on eBay (NASDAQ:EBAY) following the company’s mixed third-quarter 2025 results. The stock currently trades at $99.54, up an impressive 62.56% year-to-date and nearly at its 52-week high of $101.15. According to InvestingPro data, eBay is currently trading close to its Fair Value estimate.
eBay reported Gross Merchandise Volume (GMV) nearly 3% above the high end of guidance, with Focus Category growth accelerating five percentage points to 15% year-over-year. The company’s first-party advertising business also showed strong performance, accelerating to 23% year-over-year growth excluding foreign exchange effects, up 600 basis points from the second quarter of 2025.
Despite these positive developments, eBay’s gross profit margins contracted by 90 basis points, while adjusted operating margins contracted by 10 basis points year-over-year. GAAP operating income fell by $19 million compared to the same period last year as the company continues an investment cycle that is expected to extend into 2026. InvestingPro data shows eBay maintains impressive gross profit margins of 71.88% over the last twelve months, despite the recent contraction.
eBay acknowledged facing difficult comparisons in trading cards, bullion, and coins, which could create a two-point headwind to GMV for 2026. The company also noted that changes to de minimis rules would create an additional one-point headwind.
Citizens believes eBay’s investments in shipping, live commerce, authentication expansion, and artificial intelligence can help sustain GMV growth, with the firm projecting mid-single-digit GMV growth for 2026 despite the acknowledged headwinds. With a market capitalization of $45.49 billion and a P/E ratio of 21.74, eBay continues to aggressively buy back shares while maintaining a moderate debt level. For deeper insights into eBay’s financial health and growth prospects, access the comprehensive Pro Research Report available exclusively on InvestingPro.
In other recent news, eBay reported its third-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved a non-GAAP earnings per share of $1.36, exceeding the forecasted $1.33. Revenue also outperformed projections, totaling $2.82 billion compared to the anticipated $2.73 billion. Following these results, Goldman Sachs adjusted its price target for eBay from $72 to $78, while maintaining a Sell rating on the stock. The adjustment was influenced by eBay’s performance, which exceeded both Goldman Sachs and Street expectations. The company delivered gross merchandise value, revenue, and non-GAAP EPS results that were 2-4% ahead of Goldman’s estimates. Despite the positive earnings report, eBay’s stock experienced a slight decline in aftermarket trading.
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