It Will Take Time For eBay To Win Back Lost Consumer Mind Share From Alibaba And Others, This Analyst Says While Initiating Coverage

Needham analyst Anna Andreeva initiated coverage on eBay Inc (NASDAQ:EBAY) with a Hold rating.
Andreeva expressed optimism over eBay's innovative initiatives brought by its new management team (focus categories, authentication, Vault).
She saw that regaining consumer mind share lost to niche vertical platforms domestically like StockX, The RealReal, Inc (NASDAQ:REAL), Poshmark, Inc (NASDAQ:POSH), and internationally like Alibaba Group Holding Limited (NYSE:BABA) will take time, especially given the consumer discretionary backdrop.
She saw 2Q22 was in line with expectations, although with GMV under pressure, and viewed management's near to medium-term top-line goals and sell-side estimates for '23/'24 at risk.
YTD, EBAY stock has been one of the better performers in her space, benefiting from a ~2% dividend yield and share buybacks.
However, in the absence of top-line stabilization, valuation could contract, she added.
Price Action: EBAY shares traded higher by 0.70% at $48.97 on the last check Monday.

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