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Investing.com - MoffettNathanson raised its price target on eBay (NASDAQ:EBAY) to $74.00 from $64.00 on Tuesday, while maintaining a Neutral rating on the e-commerce marketplace. The stock currently trades at $77.63, near its 52-week high of $79.84, with InvestingPro analysis indicating the stock is slightly overvalued at current levels.
The firm highlighted the trading cards business as a significant driver of eBay’s growth, noting it has become the largest contributor to Gross Merchandise Value (GMV) growth for two consecutive quarters through Q1 2025.
MoffettNathanson estimates that trading cards now represent approximately 5% of eBay’s consolidated GMV, describing it as "the output of a sophisticated strategy to turn trading card collecting and trading into a frictionless pursuit."
The research firm believes the strength in eBay’s trading cards business is sustainable with further growth potential as the company continues to improve its product offerings to maintain its dominant position in this category. Get deeper insights into eBay’s growth strategy and financial health with a comprehensive InvestingPro analysis, which includes 10+ additional exclusive ProTips.
eBay’s stock has seen its earnings multiple increase by 26% over the past 12 months as market perception has shifted from viewing the company as a "terminal decliner" to a potential growth story, reflected in its strong 47% return over the past year and current P/E ratio of 18.32.
In other recent news, eBay has seen several updates from various analyst firms following its strong financial performance. Needham raised its price target for eBay to $78, citing the company’s impressive first-quarter results and second-quarter guidance that surpassed expectations. The firm highlighted eBay’s Gross Merchandise Volume (GMV) growth, particularly in March and April, as a key factor in its positive outlook. Similarly, CFRA increased its price target to $87, maintaining a Buy rating due to improving GMV trends and potential margin expansion. CFRA’s revised earnings per share estimates for 2025 and 2026 support their optimistic view of eBay’s stock performance.
JPMorgan also adjusted its price target to $66, acknowledging eBay’s strategic shifts and tech-driven innovations that are beginning to impact revenue growth positively. However, they remain cautious, noting the need for more evidence of sustained GMV growth. Meanwhile, Susquehanna raised its price target to $70, reflecting eBay’s solid first-quarter performance and robust trends in the second quarter. Despite potential macroeconomic and tariff challenges, Susquehanna expressed confidence in eBay’s ability to meet its full-year outlook.
Citizens JMP reiterated a Market Perform rating, recognizing eBay’s management efforts and the potential of artificial intelligence to benefit the platform. However, they seek more evidence of growth acceleration before adopting a more positive stance. These developments underscore a mixed but generally optimistic sentiment among analysts regarding eBay’s future prospects in the competitive e-commerce landscape.
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