EBAY

eBay Inc

TMT, Consumer


Presented:10/09/2020
Price:$55.45
Cap:$38.81B
Current Price:$66.99
Cap:$32.76B

Presented

Date10/09/2020
Price$55.45
Market Cap$38.81B
Ent Value$41.08B
P/E Ratio8.39x
Book Value$4.12
Div Yield1.12%
Shares O/S699.88M
Ave Daily Vol8,536,493
Short Int4.12%

Current

Price$66.99
Market Cap$32.76B
eBay, Inc. operates as a commerce company, which engages in the provision of investments and acquisitions to help enable commerce on platforms for buyers and sellers online or on mobile devices. It operates throught the following platforms: Marketplace, Classifieds and StubHub. The Marketplace platform include online marketplace located at www.ebay.com, its localized counterparts and the eBay mobile apps. The Classified platform focuses in collection of brands such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others. The StubHub platform gives online ticket platform located at www.stubhub.com, its localized counterparts and the StubHub mobile apps. The company was founded by Pierre M. Omidyar in September 1995 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Adevinta ASA (ADE NO), Adyen NV (ADYEN NA), Amazon.com Inc (AMZN), eBay Inc (EBAY), PayPal Holdings Inc (PYPL)

Highlights

The presenter is long shares of eBay Inc (EBAY), which currently trades at ~$55 per share. He notes that the company’s core business is benefiting from COVID-19-related tailwinds and anticipates topline growth in line with consensus expectations over the next two years. However, he believes the Street fails to account for EBAY’s meaningful stakes in Norwegian retailer Adevinta (ADE NO) and Adyen (ADYEN NA). In his view, investors do not back out these stakes, making EBAY’s valuation seem more expensive than it is. As this story plays out and the company continues to benefit from e-commerce tailwinds, he expects significant multiple expansion, leading to his ~$100 price target.

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Idea Discussion

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