EBAY Stock Analysis: There Are Tons of Reasons to Buy This Perfect Pick Now


  • eBay (EBAY) is reasonably valued, offers an enticing dividend and is buying back its own shares.
  • Furthermore, eBay is incorporating artificial intelligence features into its platform.
  • Investors should seriously consider purchasing eBay stock right now.
eBay stock - EBAY Stock Analysis: There Are Tons of Reasons to Buy This Perfect Pick Now

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Do you prefer growth or value? Maybe a mix of both? Or do you focus on businesses that show respect to the shareholders through dividends and share buybacks? I’ve got an “all of the above” pick for you today with eBay (NASDAQ:EBAY), so stick around and I’ll give you plenty of reasons to buy and hold eBay stock.

On top of everything else, eBay is jumping headfirst into the artificial intelligence trend. When all is said and done, eBay covers all the bases and checks all the boxes for today’s investors. It’s not a question of whether you should buy eBay shares, but how many you should buy right now.

eBay Could Grow Faster With AI

Is eBay growing as a business? Let’s check the company’s fourth-quarter 2023 stats. eBay’s revenue increased 2% year over year to $2.6 billion, beating Wall Street’s consensus estimate of $2.5 billion.

Furthermore, eBay’s Q4-2023 gross merchandise volume grew 2% YOY to $18.6 billion, while analysts had expected $18.1 billion in quarterly GMV. This isn’t massive growth, but it’s still better than what Wall Street had anticipated.

Perhaps eBay will grow faster with the help of AI. According to a Barron’s report, Morgan Stanley analysts see an “opportunity for eBay with artificial intelligence-assisted listings, explaining how incorporating those can edge sales higher while also allowing margins to expand.”

Speaking of AI, eBay recently added a feature called “shop the look” to the company’s iOS mobile app. Using interactive “hot spots,” the “shop the look” feature uses generative AI to display fashion-apparel items similar to those an eBay user has already viewed.

eBay’s Great Value, Yield and Buybacks

Still not convinced to make an investment in eBay? No problem – I’m just getting started. First of all, eBay stock should appeal to anyone who is strongly focused on value.

On a trailing 12-month basis, eBay’s GAAP-measured price-to-earnings (P/E) ratio is only 9.85x. For reference, the sector median P/E ratio is 17.22x. So, eBay is very reasonably valued at the moment.

EBay stock should appeal to passive-income investors as eBay declared a quarterly dividend of 27 cents per share.

That’s up 8% compared to the prior quarterly dividend distribution. EBay’s forward annual dividend yield is 1.96%, versus the consumer cyclical sector average dividend yield of around 1%.

Finally, eBay authorized an additional $2 billion worth of buybacks to the company’s share-repurchase program. This increased eBay’s remaining share-repurchase authorization to $3.4 billion.

Thus, it’s fair to call eBay a buyback king as the company continues to demonstrate respect to its shareholders.

eBay Stock Gives You Everything but the Kitchen Sink

I ask you: what else could you possibly want? eBay is a growing business that’s incorporating AI functionalities into its platform. Plus, eBay is very reasonably valued.

Additionally, eBay shows respect to its investors through dividend payments and share buybacks. The company gives you everything but the kitchen sink, so what are you waiting for? This is a rare and amazing opportunity, so consider adding eBay stock to your portfolio .

On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

David Moadel has provided compelling content – and crossed the occasional line – on behalf of Motley Fool, Crush the Street, Market Realist, TalkMarkets, TipRanks, Benzinga, and (of course) InvestorPlace.com. He also serves as the chief analyst and market researcher for Portfolio Wealth Global and hosts the popular financial YouTube channel Looking at the Markets.

Article printed from InvestorPlace Media, https://investorplace.com/2024/05/ebay-stock-analysis-there-are-tons-of-reasons-to-buy-this-perfect-pick-now/.

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