eBay Inc. Stock: A Quantitative Analysis

Overview

eBay Inc. (NASDAQ: EBAY) is a multinational e-commerce company based in San Jose, California. The company operates several online marketplaces, including eBay.com, which allows users to buy and sell a wide variety of goods and services. eBay Inc. generated $10.7 billion in revenue in 2021.

Recent Performance

Over the past year, eBay Inc. stock has performed well, gaining over 25%. This outperformance is likely due to several factors, including the company's strong financial performance and its continued expansion into new markets.

In the fourth quarter of 2021, eBay Inc. reported revenue of $2.9 billion, up 11% year-over-year. The company also reported net income of $879 million, up 22% year-over-year.

Analysts are generally positive on eBay Inc. stock. The average analyst rating is "buy," and the average price target is $85.00.

Valuation

eBay Inc. stock trades at a forward P/E ratio of 20.0x, which is in line with the average P/E ratio of other e-commerce companies. The company's PEG ratio is 1.5x, which suggests that the stock is fairly valued.

Risks

There are several risks associated with investing in eBay Inc. stock, including:

• The company's revenue growth is slowing. In the fourth quarter of 2021, eBay Inc.'s revenue grew by only 11%, which is slower than the company's growth rate in previous quarters.
• The company faces competition from other e-commerce companies, such as Amazon.com, Inc. (AMZN) and Walmart Inc. (WMT).
• The company's business is cyclical, which means that its performance is tied to the overall economy.

Conclusion

eBay Inc. stock is a solid investment for investors who are looking for a long-term growth stock. The company has a strong financial position and is well-positioned to continue to grow in the future. However, investors should be aware of the risks associated with investing in eBay Inc. stock before making an investment decision.

Tables

| Table 1: eBay Inc. Financial Highlights |
|---|---|
| Revenue (2021) | $10.7 billion |
| Net income (2021) | $2.9 billion |
| Gross merchandise volume (2021) | $94.1 billion |
| Active buyers (2021) | 162 million |

| Table 2: eBay Inc. Stock Performance |
|---|---|
| Price (as of March 8, 2022) | $80.62 |
| 52-week high | $86.15 |
| 52-week low | $66.50 |
| Forward P/E ratio | 20.0x |
| PEG ratio | 1.5x |

| Table 3: eBay Inc. Revenue by Segment |
|---|---|
| Marketplace | 86% |
| Classifieds | 11% |
| Other | 3% |

| Table 4: eBay Inc. Competitors |
|---|---|
| Amazon.com, Inc. (AMZN) |
| Walmart Inc. (WMT) |
| Etsy Inc. (ETSY) |
| MercadoLibre, Inc. (MELI) |

FAQs

Is eBay Inc. stock a good buy?

Yes, eBay Inc. stock is a good buy for investors who are looking for a long-term growth stock. The company has a strong financial position and is well-positioned to continue to grow in the future.

What are the risks associated with investing in eBay Inc. stock?

The risks associated with investing in eBay Inc. stock include:

• The company's revenue growth is slowing.
• The company faces competition from other e-commerce companies.
• The company's business is cyclical, which means that its performance is tied to the overall economy.

What is the future of eBay Inc.?

eBay Inc. is well-positioned to continue to grow in the future. The company is investing in new technologies and expanding into new markets. The company is also well-positioned to benefit from the growth of e-commerce.