Bullish indicating open at $55-$60, IPO prices at $37
Investing.com - Needham raised its price target on eBay (NASDAQ:EBAY) to $95.00 from $78.00 on Thursday, while maintaining a Buy rating following the e-commerce company’s second-quarter results. The e-commerce giant, currently valued at $35.74 billion, has demonstrated strong momentum with a 26.27% year-to-date return.
The firm cited better-than-expected performance in the quarter, noting that eBay reported an acceleration in growth despite rising market expectations. According to InvestingPro data, the company maintains impressive gross margins of 71.85% and trades at a P/E ratio of 18.29.
Needham attributed eBay’s accelerating growth to the strength of its focus categories and investments in platform tools like live commerce, which have allowed the company to benefit from improving macroeconomic conditions while gaining market share.
The research firm acknowledged that while eBay’s valuation has increased, there could be further upside to estimates if the positive momentum continues into 2026.
eBay’s strong results add to a growing list of e-commerce companies reporting topline beats, suggesting the sector may be turning a corner, according to Needham.
In other recent news, eBay reported a robust performance for the second quarter of 2025, exceeding market expectations. The company posted earnings per share of $1.37, surpassing the forecasted $1.29. Revenue also outperformed predictions, reaching $2.73 billion compared to the anticipated $2.64 billion. Following these results, Goldman Sachs raised its price target for eBay from $53.00 to $72.00, despite maintaining a Sell rating on the stock. The increase in the price target was attributed to strong gross merchandise volume, revenue, and non-GAAP EBIT margin, particularly in the U.S. market. These developments highlight the company’s ability to deliver better-than-expected financial outcomes. There were also slight improvements noted in the take rate, contributing to the positive outlook. These recent developments provide investors with critical insights into eBay’s financial health and market performance.
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