Investors looking for stocks in the Internet - Commerce sector might want to consider either JD.com, Inc. (JD) or eBay (EBAY) . But which of these two stocks presents investors with the better value opportunity right now? Let's take a closer look.There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings es ...

When it comes to stock buybacks, announcements of new repurchase programs are important to stay aware of. However, announcing a share repurchase program is very different from actually buying back shares. Unlike dividends, when a company announces a share repurchase program, it is not obligated to actually execute it. This is one reason many companies prefer to return capital to shareholders using buybacks rather than dividends. It gives them added flexibility in how they can use the cash on their balance s ...

The Q4 earnings season has been a harsh time, putting a sharp dent in many rebound rallies. With stock markets hovering near all-time highs, investors are understandably looking for perfection, as reasons to keep buying stocks are becoming scarce.With combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a reg ...

Workforce and Human Capital - As of December 31, 2024, the company employed approximately 11,500 people globally, with about 7,000 located in the United States[49]. - The company has a robust human capital management strategy overseen by its Compensation and Human Capital Committee, emphasizing talent recruitment, development, and retention[49]. - The company has introduced a wellness program called Thrive Global in 2024 to promote overall well-being among employees[54]. - The company is committed to fostering diversity and inclusion within its workforce, which it believes enhances innovation and strengthens customer connections[53]. - The company has announced restructuring plans, including workforce reductions, which may impact employee morale and corporate culture[132]. Technology and Innovation - The company is focused on modernizing its Marketplace platforms through technologies like AI, aiming to create highly personalized shopping experiences[43]. - The company is investing in AI technologies, including large language models, to enhance its products and services, but faces competition and potential delays in development[97]. - The company must adapt to the increasing importance of Gen AI technologies in ecommerce to remain competitive[76]. - The company’s technology infrastructure is designed to reduce downtime and enhance the reliability of its Marketplace platforms[42]. Intellectual Property and Legal Risks - The company has been actively pursuing the registration of its intellectual property, including trademarks and patents, to protect its proprietary technology[46]. - The company faces ongoing legal proceedings regarding intellectual property rights, which could impact its business operations[48]. - The company faces ongoing challenges in protecting its intellectual property rights, which may be costly and time-consuming to enforce[112]. - The company is exposed to significant litigation costs from claims related to third-party sales on its platform[141]. - The company has been involved in various patent suits and may face more claims related to AI technologies and open-source software[117]. - Legal and regulatory developments regarding immigration could affect the company's ability to attract and retain skilled employees[130]. Competition and Market Dynamics - The company faces substantial competition from well-established brands like Amazon, Alibaba, and others, which have greater resources and larger user communities[69]. - The competitive landscape has intensified due to improved user experiences, lower shipping costs, and faster delivery times offered by competitors[70]. - The company emphasizes specialized categories, referred to as Focus Categories, which include motor parts, collectibles, and authenticated luxury items, to drive growth[79]. - The company faces challenges in meeting the unique needs of focus category buyers and sellers, which could lead to customer loss if not addressed promptly[79]. Financial Performance and Risks - The company generates approximately half of its net revenues outside the United States, making it sensitive to fluctuations in foreign currency exchange rates[84]. - International operations, particularly in the UK, Germany, and Australia, have contributed to about half of the company's net revenues in recent years[86]. - The company has substantial indebtedness, which may limit cash flow and liquidity if not managed properly[178]. - The Federal Reserve's interest rate hikes have significantly impacted borrowing costs, which may adversely affect financial results[175]. - The fair market value of fixed-rate investment securities was negatively affected by rising interest rates, although recent declines in rates may improve investment income[177]. Regulatory Compliance and Data Protection - The company is subject to increasing regulatory scrutiny regarding privacy, data protection, and cybersecurity laws globally, which may evolve and increase compliance costs[145]. - Compliance with the California Consumer Privacy Act (CCPA) requires the company to provide new rights to individuals, such as access, deletion, and correction of personal data[147]. - The Digital Services Act (DSA) imposes fines of up to 6% of annual global revenues for non-compliance, creating additional operational burdens[155]. - The company has implemented policies to ensure compliance with applicable laws, but there is no assurance against violations by customers or third parties[140]. - The company maintains cybersecurity insurance, but it may not be sufficient to cover potential liabilities from data breaches[126]. Currency and Taxation Risks - The company is subject to foreign currency risk due to significant international revenues and costs, primarily in British pounds and euros[314]. - The company maintains a foreign exchange exposure management program to mitigate risks associated with currency fluctuations[315]. - The company uses foreign exchange derivative contracts to protect forecasted U.S. dollar-equivalent earnings from adverse currency exchange rate changes[316]. - The company is exposed to potential tax liabilities due to indirect tax claims from various jurisdictions, which could harm its business if successful[181]. - Legislative changes regarding tax collection could make the company's Marketplace platforms less attractive to buyers, impacting overall business[184]. Cybersecurity and Fraud Prevention - Cybersecurity threats have increased, with a significant data breach in 2014 affecting up to 145 million users, highlighting vulnerabilities in the company's systems[124]. - The company has implemented measures to combat fraudulent activities on its Marketplace platforms, but effectiveness remains uncertain[120]. - Future cyberattacks are expected to be more sophisticated, particularly with the rise of AI technologies[124]. - The company collects and processes a significant amount of sensitive user information, increasing the risk of data breaches[122].

Core Viewpoint - eBay's stock experienced a significant decline following the release of its Q4 2024 financial results, reflecting investor disappointment over slow growth expectations despite modest revenue increases [1][4]. Financial Performance - eBay reported Q4 revenue of $2.6 billion, representing a 1% year-over-year increase, driven by a 4% rise in gross merchandise volume [2]. - For the full year 2024, eBay's revenue reached $10.3 billion, marking a 2% increase from 2023 [2]. Future Guidance - Management's guidance for Q1 2025 indicates revenue growth of at most 1%, which aligns with recent trends but fell short of investor expectations due to potential growth from partnerships with Meta Platforms [3][4]. - Investors had anticipated stronger growth following news of eBay listings being allowed on Facebook Marketplace, leading to disappointment when guidance confirmed ongoing slow growth [4]. Earnings and Shareholder Returns - eBay expects earnings per share (EPS) to rise from $0.85 in Q1 2024 to approximately $1 in the upcoming quarter, reflecting nearly 18% growth attributed to a lower share count [5]. - The company demonstrated strong profitability, returning $1 billion to shareholders in Q4 through share repurchases and dividends, alongside a 7% increase in its quarterly dividend [6]. Investment Potential - Despite the lack of top-line growth, eBay's stability in generating bottom-line growth and increasing dividends may present a buying opportunity at the right price [6][7]. - Future partnerships, particularly with Meta Platforms, could potentially enhance growth and provide returns for shareholders [7].

eBay Inc. EBAY shares are trading lower on Thursday following fourth-quarter results and soft first-quarter revenue guidance reported on Wednesday.The company reported earnings per share of $1.25, which beat the analyst consensus estimate of $1.20, and revenue of $2.579 billion marginally exceeded the analyst consensus estimate of $2.571 billion.The company sees first-quarter adjusted EPS of $1.32-$1.36, versus the $1.33 estimate, and revenue of $2.52 billion-$2.56 billion, versus the $2.59 billion estimate ...

Core Viewpoint - eBay Inc. reported strong fourth-quarter 2024 results with non-GAAP earnings per share of $1.25, exceeding estimates and showing a 16% year-over-year increase [1][2] Financial Performance - Net revenues for the quarter were $2.57 billion, slightly missing estimates by 0.02%, but reflecting a 1% increase year-over-year [2] - eBay's total gross merchandise volume (GMV) reached $19.3 billion, growing 4% year-over-year, driven by solid consumer demand during the holiday season [4] - The company's active buyer base increased to 134 million, up 1% year-over-year, surpassing consensus expectations [3] Advertising and Revenue Streams - First-party advertising generated revenues of $434 million, marking an 18% increase year-over-year [2] - Total advertising offerings yielded $445 million, representing 2.3% of gross merchandise volume [3] Operating Metrics - Gross margin for the quarter was 72.16%, remaining stable year-over-year, while operating expenses decreased by 8.6% [6] - Non-GAAP operating margin expanded to 27%, reflecting operational efficiencies [7] Balance Sheet and Cash Flow - As of December 31, 2024, cash equivalents and short-term investments rose to $5.89 billion, while long-term debt decreased to $5.75 billion [8] - The company generated $677 million in cash from operating activities and had a free cash flow of $560 million [9] Future Guidance - For Q1 2025, eBay expects revenues between $2.52 billion and $2.56 billion, with a projected GMV of $18.3 billion to $18.6 billion [10] - Non-GAAP earnings per share are anticipated to be between $1.32 and $1.36 [11]

Core Insights - eBay experienced a transformative year in 2024 by deploying AI tools for employees, sellers, and buyers, launching proprietary large language models (LLMs) [1][2] - The company utilized its extensive eCommerce data to create specialized LLMs, enhancing efficiency in various tasks and launching numerous customer-facing features [2] - eBay's collaboration with OpenAI's Operator aims to create a new online shopping channel, potentially increasing seller reach and buyer exposure [3][4] AI and Productivity - The introduction of new AI tools improved productivity in engineering and customer service, enhanced search results, and assisted sellers in generating product listings and automating social media [2] - By the end of 2024, dozens of features powered by LLMs were launched across various aspects of the platform, including search, payments, and marketing [2] Payment Innovations - eBay expanded payment methods, including the introduction of Klarna's buy now, pay later option in six European countries and a partnership with Riverty for monthly invoice payments in Germany [4][5] - The company focuses on adding locally relevant payment options to enhance buyer choice and optimize payment mix [5] Strategic Acquisitions - eBay's acquisition of Caramel, an online automotive transaction solution provider, aims to enhance trust in vehicle purchases and simplify the complexities of vehicle sales [6] - The improved vehicle transaction experience is expected to drive synergies in other categories, as vehicle buyers typically spend significantly on parts and accessories [7]

eBay Inc. (NASDAQ:EBAY) Q4 2024 Earnings Conference Call February 26, 2025 5:00 PM ET Company Participants John Egbert - Vice President, Investor Relations Jamie Iannone - President and Chief Executive Officer Steve Priest - Chief Financial Officer Conference Call Participants Michael Morton - MoffettNathanson Lee Horowitz - Deutsche Bank Eric Sheridan - Goldman Sachs Ygal Arounian - Citi Nathan Feather - Morgan Stanley Colin Sebastian - Baird Ross Sandler - Barclays Nick Jones - Citizens Stephen Ju - UBS O ...

© 2025 eBay | Business & Financial Highlights Q4'24 © 2025 eBay | Business & Financial Highlights Q4'24 2 © 2025 eBay | Business & Financial Highlights Q4'24 © 2025 eBay | Business & Financial Highlights Q4'24 Reconciliations of Non-GAAP measures are included in the Appendix of this presentation * Enthusiast Buyers are defined as buyers with at least 6 purchase days and $800+ (or local currency Enthusiast Buyers* Diluted Non-GAAP EPS Non-GAAP Operating Margin Revenue Gross Merchandise Volume equivalent) ann ...