Some Disappointments From eBay's Earnings Call: Analysts Weigh In

EBay Inc EBAY reported broadly in-line results for the fourth quarter, but its gross merchandise value (GMV) guidance for 2022 came in below the consensus.

Raymond James On eBay: Analyst Aaron Kessler maintained a Market Perform rating for the stock. The Raymond James analyst said the two positives for eBay were “faster GMV growth in focus categories that now represent 20% of global volume” and continued traction with Payments and Advertising.

He was disappointed by the 17% decline in international GMV and 9% decline in active buyers and 8% decline in active sellers “due to the company’s shift away from lower-value customers,” he noted.

“2022 GMV guidance of $78.3-$80.5B was below consensus of ~$84B and implies a decrease of 5%-8% FX neutral,” Kessler added, saying this was due to “continued tough comps and international headwinds.”

Benchmark On eBay: Analyst Daniel Kurnos reiterated a Buy rating for eBay, while reducing the price target from $85 to $75. The company’s quarterly results were “much better than expected,” the Benchmark analyst wrote.

Although eBay reported a decline in active buyers, its high-value buyers “were still up 3% on a 2-year stack vs. a 9% decline for low-value buyers over the same period, with the latter representing only 5% of GMV,” he added.

“The two perhaps disappointing factors were the comments around a 2%-3% exit growth rate in 4Q, along with the 250-300bp of operating margin compression,” Kurnos said.

EBAY Price Action: Shares of eBay had declined by 1.69% to $53.67 at the time of publication Thursday.

Photo: Courtesy eBay