Is eBay Inc. (EBAY) A Good Stock To Buy Now?

1 day ago 1

Ricardo Pillai

Sun, April 26, 2026 astatine 4:56 PM CDT 3 min read

Is EBAY a bully banal to buy? We came across a bullish thesis connected eBay Inc. connected Rijnberk InvestInsights’s Substack by Daan | InvestInsights. In this article, we volition summarize the bulls’ thesis connected EBAY. eBay Inc.'s stock was trading astatine $107.13 arsenic of April 20th. EBAY’s trailing and guardant P/E were 24.57 and 17.79 respectively according to Yahoo Finance.

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eBay presents a compelling concern lawsuit arsenic a dominant, resilient level successful the planetary resale economy. Despite its perception as an aging e-commerce relic, the institution processes implicit $80 cardinal successful yearly gross merchandise measurement (GMV) and operates a two-sided marketplace connecting idiosyncratic sellers, nonrecreational merchants, and tiny businesses with buyers worldwide. Unlike Amazon, eBay avoids first-party retail operations and fulfillment risks, deriving gross chiefly from transaction instrumentality rates, promoted listings, and outgo services.

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This asset-light operation produces precocious operating margins, beardown escaped currency flow, and capital-efficient growth. Strategic refocusing on high-value “focus categories” specified arsenic collectibles, refurbished electronics, car parts, and luxury goods has allowed eBay to commercialized standard for quality, investing successful authentication, grading, and seller tools to deepen trust, amended conversion, and monetize transactions beyond specified volume.

Q4/FY25 results reflected this approach, with GMV up 8% YoY to $21.2 billion, gross up 13% to $2.96 billion, and EPS rising 13% to $1.41, driven by advertizing growth, high-margin services, and beardown U.S. performance. Enthusiast buyers, though lone 12% of the idiosyncratic base, relationship for 70% of GMV, providing durable revenue. The caller $1.2 cardinal acquisition of Depop strengthens eBay’s foothold with Gen Z buyers and the fast-growing circular manner market, portion integrating Depop into eBay’s infrastructure offers monetization and operational leverage, though near-term borderline dilution is expected.

Guidance for 2026 indicates continued GMV maturation of 9-10% and EPS maturation of roughly 10%, with medium-term prospects for mid-single-digit GMV growth, borderline expansion, and low-teens EPS growth. At 15x earnings, 16x FCF, and a structurally higher-margin, predictable concern model, eBay trades attractively relative to peers, with aggregate catalysts for revenue, margin, and shareholder returns, including buybacks and dividends, making it a uniquely durable level investment.

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