EBAY

EBay Inc.

TMT, Consumer


Presented:06/17/2021
Price:$65.33
Cap:$44.51B
Current Price:$66.99
Cap:$32.76B

Presented

Date06/17/2021
Price$65.33
Market Cap$44.51B
Ent Value$46.44B
P/E Ratio15.84x
Book Value$5.54
Div Yield1.04%
Shares O/S681.26M
Ave Daily Vol7,591,121
Short Int3.48%

Current

Price$66.99
Market Cap$32.76B
eBay, Inc. operates as a commerce company. The company platforms include online marketplace and its localized counterparts, including off-platform businesses in South Korea, Japan, and Turkey, as well as eBay’s suite of mobile apps. The company technologies and services are designed to give buyers choice and a breadth of relevant inventory and to enable sellers worldwide to organize and offer their inventory for sale, virtually anytime and anywhere. The company was founded by Pierre M. Omidyar in September 1995 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Amazon.com Inc (AMZN), eBay Inc (EBAY), Facebook Inc (FB) 

Highlights

The presenter sees a favorable risk/reward setup for eBay (EBAY) short, viewing it as a major COVID beneficiary that has experienced more than 20% YoY GMV growth in each of the past four quarters. He now expects four consecutive quarters of HSD GMV declines as they lap strong pandemic quarters and the world continues to reopen. Furthermore, EBAY is logistically challenged and faces competition from other marketplaces, which are increasingly stealing market share. The stock is currently trading in the mid-$60s range or 16x EPS, and the presenter believes the stock’s multiple will de-rate from current levels to 10x EPS to reach a price target range of $40-$43.

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Idea Discussion

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