eBay Meets Q4 Goal, Stock Still Drops

eBay has met Wall Street's expectations but that is not good enough for their stock to go up.

Their sales were unimpressive to say the least. They were flat. The analysts expected them to get $2.85 billion and eBay did exactly that. They did beat the adjusted EPS by 4.3%. They are off to a slow start as they are behind on their revenue guidance for Q1 of 2025.

Is eBay A Good Buy?

Well, eBay does have over 2 million more buyers than it did the year prior which means more money should theoretically be spent on the website. However, their active buyers as a whole have declined by 1.6%. They are expecting the revenue to grow by a little over 3% but eBay is sitting pretty flat as we head into 2025. 

eBay's ARPB (average revenue per buyer) is a little over 4% which is not great meaning investors need eBay to start testing new strategies. 

As always, do your own research. I would personally not be adding eBay to my portfolio. It has not had great sales the past few years which to me shows signs of a struggling company. It has a good EBITA, but we are looking at a more long-term investment and eBay does not seem ideal. The good EBITA means they have a solid business model but if you are going to hold this investment for 10,20,50, etc... years then short-term success will not suffice. Is it possible that eBay will be super successful... yes but they need a rehaul on their forward moving process.