eBay (EBAY) stock is moving lower Thursday after the e-commerce company beat top- and bottom-line expectations for its fourth quarter but issued a mixed outlook for the current quarter.
In the three months ending December 31, eBay's revenue increased 0.7% year over year to $2.6 billion. Earnings per share (EPS) rose 16.8% from the year-ago period to $1.25.
"eBay delivered strong results in the fourth quarter, as we met or exceeded expectations across our key financial metrics," said Chief Financial Officer Steve Priest.
eBay also said Gross Merchandise Volume (GMV) increased 4% year over year to $19.3 billion, which also beat analysts' expectations of $19.1 billion.
"We created a solid foundation to build upon in 2025," Priest added, "and our outlook reflects our confidence in eBay's ability to drive sustainable, long-term growth."
The results beat analysts' expectations. Wall Street was anticipating revenue of $2.57 billion and earnings of $1.20 per share, according to Investor's Business Daily.
For its first quarter, eBay said it expects to achieve revenue in the range of $2.52 billion to $2.56 billion, GMV in the range of $18.3 billion to $18.6 billion and earnings in the range of $1.32 to $1.36.
The midpoints of these ranges were mixed compared with analysts' expectations of revenue of $2.59 billion, GMV of $18.9 billion and earnings of $1.33 per share.
Is eBay stock a buy, sell or hold?
Following its 44.8% total return in 2024 and a 10%-plus run to start 2025, Wall Street is on the sidelines when it comes to the large-cap stock.
According to S&P Global Market Intelligence, the average analyst target price for EBAY is $61.94, which represents a discount of about 1% to current levels. Meanwhile, the consensus recommendation is Hold.
Financial services firm Needham reiterated its Buy rating and $72 price target on EBAY stock following the earnings release.
"EBAY is outperforming other marketplace peers in our coverage, posting the third consecutive quarter of positive GMV growth amid a tough macro backdrop, specifically in the UK and Germany, and management expects this growth trajectory to continue in '25E," says Needham analyst Bernie McTernan in a note this morning.
Mcternan cites 6% growth and "strong trends" in EBAY's core business, which continues "to be a strong driver for the company in their return to sustainable and profitable growth."
