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On Thursday, JPMorgan analyst Doug Anmuth increased the price target for eBay (NASDAQ:EBAY) shares to $60 from the previous $54, while maintaining a Neutral rating on the stock. The adjustment follows eBay’s first-quarter earnings report, which showed numbers surpassing the high end of management’s guidance, with gross merchandise volume (GMV), revenue, and margins all exceeding expectations. The company’s impressive gross profit margin of 72% and strong financial health score, as reported by InvestingPro, support this positive momentum. Currently trading at a P/E ratio of 16.95x, eBay appears slightly undervalued according to InvestingPro’s Fair Value analysis.
eBay’s first-quarter GMV experienced a year-over-year increase of 2% on a foreign exchange-neutral basis, attributed to broad-based strength in Focus Categories, which saw a 6% growth year-over-year. Notably, Collectibles continued to be the largest growth contributor for the second consecutive quarter. With total revenue reaching $10.28 billion and a market capitalization of $31.76 billion, eBay has demonstrated resilient performance. Despite facing challenging macroeconomic conditions and uncertainties related to US tariffs, eBay has managed to maintain its full-year guidance for low single-digit foreign exchange-neutral GMV growth and high single-digit percentage Non-GAAP EPS growth.
The company has continued to innovate within its core business, doubling down on the fashion category. It introduced a new AI-powered discovery experience tailored for fashion shoppers in the US and UK markets. Additionally, eBay has expanded its focus by launching pre-loved apparel in the US as a new category. InvestingPro analysis reveals several bullish indicators, including aggressive share buybacks and consistent dividend growth, with the company having raised its dividend for 6 consecutive years. For deeper insights into eBay’s financial health and growth prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers.
On the geographical front, eBay’s UK customer-to-customer (C2C) initiatives, which include Managed Shipping and eBay Balance, have exceeded internal expectations and contributed to strong growth. Furthermore, the introduction of a buyer protection fee in February has significantly narrowed the monetization gap.
In his remarks, Anmuth noted the healthy demand trends that have persisted into April, despite the wider GMV guidance provided by management to account for macroeconomic and tariff-related uncertainties. eBay’s commitment to delivering consistent GMV growth and robust shareholder returns was also highlighted, with the stock delivering an impressive year-to-date return of 10.52%. The updated December 2025 price target of $60 is based on approximately 13.5 times the firm’s projected 2026 GAAP earnings per share of $4.50.
In other recent news, eBay Inc. has reported its first quarter 2025 earnings, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $1.38, exceeding the forecasted $1.34, and reported revenue of $2.6 billion, which was higher than the anticipated $2.55 billion. This performance reflects eBay’s strategic focus on innovation, particularly with the introduction of AI-powered tools to enhance user experience. Despite these positive results, eBay’s stock experienced a slight decline in aftermarket trading. Analysts from firms like Goldman Sachs and Morgan Stanley (NYSE:MS) have been actively discussing the company’s performance and future prospects. Additionally, eBay plans to repurchase over $2 billion in shares and anticipates high single-digit EPS growth for 2025. The company is also navigating challenges related to global trade policies and tariffs, which have created uncertainties in the market. These developments highlight eBay’s ongoing efforts to adapt and thrive in a dynamic business environment.
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