The changes in EBAY stock over the recent years have been far from consistent. Returns for the stock were 34% in 2021, -36% in 2022, 8% in 2023, and 45% in 2024.
In comparison, returns for the S&P 500 have been 27% in 2021, -19% in 2022, 24% in 2023, and 23% in 2024 — indicating that EBAY underperformed the S&P in 2022 and 2023.
For FY 2024, revenue was $10.3 billion, up 2% y-o-y. Gross Merchandise Volume was $74.7 billion, up 2% on a reported basis. GAAP and Non-GAAP operating margins were 22.5% and 28.1% respectively. Annual active buyers were 134 million globally.
In Q4 2024, the company posted net revenues of $2.6 billion — up 1% y-o-y. Further, the Gross Merchandise Volume (GMV) increased by 4% y-o-y to $19.3 billion. eBay reported adjusted earnings of $1.25 per share, compared to $1.07 in the prior-year quarter.
U.S. inflation is creating a mixed economic landscape for eBay. With tightened consumer budgets, shoppers are reducing discretionary purchases of items like collectibles and refurbished goods, potentially lowering eBay's gross merchandise volume growth.
Simultaneously, sellers face escalating costs for inventory and shipping, forcing price increases that could further depress sales and affect eBay's commission revenue.
These competing forces—rising operational costs and shifting consumer behavior—ultimately pressure eBay's profit margins, though the platform may benefit from its position as a marketplace for value-conscious shoppers during inflationary periods.
eBay is integrating AI throughout its platform to improve user experiences. For buyers, AI enhances search and discovery with visual search, personalized recommendations, and more relevant results. Sellers gain from AI-driven tools for listing, pricing, inventory, and promotions. AI also strengthens security with fraud detection and authentication, especially for high-value items. Customer service is enhanced through chatbots and feedback analysis. Furthermore, AI data analysis helps eBay optimize performance and identify market trends, creating a more efficient and secure marketplace.
For additional details, select a driver above or select a division from the interactive Trefis split for eBay at the top of the page.
eBay is known for operating the online marketplace eBay.com. The company's marketplace is where third-party buyers and sellers can transact in a variety of products including clothing, electronics, media, collectibles, automobiles, and many other types of merchandise.
The global e-commerce market continues to expand rapidly. Recent industry forecasts indicate that global retail e-commerce sales reached approximately $6.3 trillion in 2023 and are expected to exceed $7.4 trillion by 2025. In this environment, if eBay can successfully address its current challenges—such as operational inefficiencies and stiff competition—it stands to benefit from the growing demand for online shopping. However, given the intensifying rivalry from Amazon, Alibaba, and even traditional retailers boosting their digital presence, eBay may continue to underperform relative to the broader market in the near term.
eBay prioritizes conversion rate improvement to help sellers turn listings into sales. Recent AI-powered 'Magic Listings' tools have streamlined listing, increased completion rates, and boosted conversions, contributing to significant GMV gains. Enhanced SEO and expanded marketing, including social platform integration, have further driven buyer engagement. While specific conversion rates aren't public, internal data and feedback indicate improved listing effectiveness in driving sales.
