eBay: No Sizzle Except For Value


  • eBay’s stock has jumped nearly 20% year to date, but the company is struggling to maintain its relevance despite its growth in “focus categories.”
  • The company has raised its sales and marketing spend as a percentage of revenue just to achieve roughly flat GMV (and mid-single digit growth in focus categories).
  • eBay’s TTM free cash flow falls short of its total shareholder returns, with little hopes for meaningful FCF growth.
  • The stock’s only saving grace is its cheap valuation at 11x P/E, but its lack of growth warrants a discounted multiple.
man sitting the MacBook retina with site PayPal on screen


If there’s one thing that’s constant in the tech industry, it’s that the market darlings that stay on top usually don’t stay for very long, and that legacy companies swiftly get shifted out of the mainstream narrative. It’s difficult to remember that eBay (

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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