eBay: With GMV Regaining Its Foothold, It’s Time To Buy Back In (Rating Upgrade)

Summary:

  • Amid market optimism, I recommend rotating into value-oriented stocks like eBay, which has shown strong Q3 results and a promising outlook.
  • eBay’s Q3 earnings revealed a re-acceleration in GMV and revenue, boosting my confidence in its short-term potential and leading me to rate it a buy.
  • Despite GMV and revenue accelerating in Q3, and the company guiding to continued GMV acceleration in Q4, shares of eBay slid post-earnings, creating a well-timed buying opportunity.
  • The stock continues to trade at a <12x forward P/E. In my view, it should be able to re-rate upward to 14-15x in a short/medium-term window for ~20% gains.

man sitting the MacBook retina with site PayPal on screen

Prykhodov

Amid enthusiasm for strong Q3 earnings and the ability of the U.S. macroeconomy to move successfully past the U.S. election, the S&P 500 (SP500) sits near all-time highs and historic valuation levels again. Optimism is the order of


Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in EBAY over 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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