eBay Inc. Conference Call Summary Company Overview - **Company**: eBay Inc. (NASDAQ: EBAY) - **Event**: Bernstein 40th Annual Strategic Decisions Conference - **Date**: May 30, 2024 - **Participants**: Stephen Priest (CFO), Nikhil Devnani (Bernstein Analyst) Key Points Recent Developments - eBay closed a significant deal with Adevinta, realizing $2.4 billion from the sale of a stake, which was a 50% increase on the initial price discussed [5][4] - eBay retains an 18% stake in Adevinta and has the option to divest an additional 10% over the next six months [5] Capital Allocation - Since 2022, eBay has returned $6.2 billion to shareholders, exceeding its target of 125% of free cash flow [7][8] - Future capital allocation strategies will be discussed in the next earnings release [6] Strategic Direction - eBay is focusing on three key pillars: relevant experiences, scalable solutions, and magical innovation [12][13] - The company aims to enhance trust and relevance in key markets (U.S., U.K., Germany) [12] Enthusiast Buyers - eBay has 132 million active buyers, with 16 million classified as "enthusiast buyers," who account for 70% of GMV [16][17] - Enthusiast buyers spend an average of $3,000 each, primarily in focus categories [17] Market Trends - The U.K. and Germany have experienced negative e-commerce growth for eight quarters, attributed to inflation and reduced disposable income [27][28] - The U.S. market is slightly better but still faces challenges due to inflation [29] Focus Categories - Focus categories represent 30% of overall GMV and grew 4% year-over-year in 2023 [23] - eBay is seeing positive growth in focus categories, with a 5% increase in Q1 [23] Innovation and Technology - Generative AI is being leveraged to enhance user experience and streamline listing processes [14][55] - eBay is investing in technology to improve search capabilities and listing efficiency [41][55] Financial Performance - eBay expects a 200 basis point increase in revenue growth compared to GMV for 2024, driven by advertising revenue [62] - The company anticipates margin expansion in 2024, guided by cost efficiencies and leveraging past investments [65][66] M&A Strategy - eBay follows a "build, buy, partner" framework for capital deployment, focusing on enhancing core business relevance [80] - Recent acquisitions include partnerships in collectibles and trading cards, aimed at driving innovation [81][82] Future Outlook - eBay aims for GMV to turn positive in Q3 or Q4 of 2024, with a focus on sustainable growth [72] - The company targets mid-single-digit GMV growth in the medium to long term, contingent on macroeconomic conditions [78] Seller Engagement - eBay's platform supports a large number of C2C sellers, with many engaging more during economic downturns [34] - The company emphasizes creating economic opportunities for sellers while being environmentally conscious [35] Conclusion - eBay is navigating a challenging macro environment while focusing on strategic investments, enhancing buyer experiences, and leveraging technology to drive growth and shareholder value [76][78]

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends eBay and recommends the following options: short July 2024 $52.50 calls on eBay. The Motley Fool has a disclosure policy.Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Not all technology stocks are equal. While certain areas of the tech sector like microchips, cybersecurity and anything related to artificial intelligence (AI) are booming right now, others are struggling. Electric vehicles, smartphones and e-commerce platforms that rely on consumer discretionary spending. Looking at these company’s current financial results emphasizes that there are plenty of tech stocks to sell right now.The current environment requires investors to be selective with their stock picks. Un ...

eBay Inc. Conference Call Summary Company Overview - **Company**: eBay Inc. (NASDAQ: EBAY) - **Participants**: Jamie Iannone (President, CEO), Steve Priest (CFO) - **Conference Date**: May 21, 2024 - **Context**: Discussion at J.P. Morgan 52nd Annual Global Technology, Media and Communications Conference Key Industry Insights - eBay is a leading global marketplace, facilitating approximately **$73 billion** in Gross Merchandise Volume (GMV) last year, with over **130 million buyers** across **190 countries** [2][4] - The company is focusing on enhancing the e-commerce experience for enthusiasts, emphasizing relevant experiences, scalable solutions, and innovative technologies [4][5] Core Strategies 1. **Relevant Experiences**: - Focus on creating tailored experiences for specific categories and countries, leading to improved customer satisfaction (CSAT) and increased GMV [4] 2. **Scalable Solutions**: - Leveraging the company's scale to drive new opportunities, particularly in payments and advertising, and launching initiatives like eBay International Shipping [4][5] 3. **Magical Innovations**: - Implementing AI-driven features to reduce friction in the user experience, targeting younger demographics and enhancing engagement [5][11] AI Utilization - eBay is leveraging Generative AI to improve productivity in customer care and engineering, enhancing employee efficiency and customer interactions [6][7][8] - AI applications include automating customer service responses and improving the listing process for sellers, such as generating product descriptions and optimizing images [11][12][32] Market Conditions - The macroeconomic environment remains challenging, particularly affecting discretionary spending in key markets like the U.S., U.K., and Germany [15][16] - The U.S. market shows slight resilience, while the U.K. and Germany have experienced negative e-commerce growth [15][16] Focus Categories Performance - Focus categories have shown a **5% GMV growth** in Q1, while the rest of the business declined by **1%** [17][19] - eBay aims to have focus categories represent about **50% of GMV** in the near term, with expectations of high single-digit growth once macro conditions normalize [18][19] Customer Acquisition and Retention - eBay's model benefits from cross-category shopping behavior, where customers who engage in focus categories tend to spend significantly more across the platform [20] - The company is enhancing customer satisfaction, with reported improvements of over **20 percentage points** in CSAT for focus categories [19][46] Advertising Revenue - Advertising revenue is currently over **2%** of GMV, with a goal to reach **3%** [36] - eBay is improving its advertising products and expanding new offerings, such as off-site advertising, which has gained traction among sellers [39][40] Financial Outlook - eBay is guiding for **60 to 100 basis points** of margin expansion in 2024, driven by operational efficiencies and strategic investments [41][44] - The company has returned **134%** of free cash flow since 2022, with plans for over **$2 billion** in returns in 2024 [55] International Shipping Initiative - eBay International Shipping has opened up **400 million listings** for U.S. sellers, enhancing global reach and improving seller satisfaction by over **20%** [50][52] Capital Allocation Strategy - eBay prioritizes reinvestment in the business to drive sustainable GMV growth while maintaining healthy capital returns to shareholders [54][55] M&A Strategy - eBay continues to evaluate opportunities for acquisitions and partnerships that align with its strategic focus, such as the recent acquisition of Golden Auctions [58][59] Conclusion - eBay is positioned to navigate current macroeconomic challenges while focusing on enhancing customer experiences, leveraging AI, and expanding its advertising and international shipping capabilities. The company remains optimistic about achieving positive GMV growth in the latter half of 2024 [27][35][64]

eBay Inc. (NASDAQ:EBAY) J.P. Morgan 52nd Annual Global Technology, Media and Communications Conference May 21, 2024 3:05 PM ET Company Participants Jamie Iannone - President, CEO Steve Priest - CFO Conference Call Participants Douglas Anmuth - JP Morgan Douglas Anmuth All right. We're going to go ahead and get started. I'm Doug Anmuth, JPMorgan's Internet analyst. We're very pleased to have with us today eBay President and CEO, Jamie Iannone; and CFO, Steve Priest. eBay is one of the world's largest and mos ...

Kenneth Cheung One of the early technology-boom Dotcom (online) favorites in the late 1990s, eBay (NASDAQ:EBAY) has witnessed declining valuation metrics since 1999. Over the last decade, several management teams have spun off the PayPal (PYPL) online money handling unit (2015), while outright selling various divisions and asset investments globally to repay debt and buy back shares. These efforts to refocus on its bread-and-butter eBay online website have helped "per share" results to grow rapidly over ...

 PSA and eBay partnership introduces new, customer-focused vault experience with streamlined grading, storing and selling of trading cards SAN JOSE, Calif., May 16, 2024 /PRNewswire/ -- Collectors, parent company of PSA, and eBay Inc. (NASDAQ: EBAY), a global commerce leader that connects millions of sellers and buyers around the world, today announced they have closed a series of previously announced transactions. This summer, eBay and PSA, a leading third party authentication and grading provider in the c ...

Bill Introduced to Recognize May 21 as Recommerce Day in California, eBay Partnering with Award-Winning Sustainability Advocate Alicia Silverstone to Launch 2024 Recommerce ReportSAN JOSE, Calif., May 15, 2024 /PRNewswire/ -- eBay Inc. (NASDAQ: EBAY), a global commerce leader that connects millions of sellers and buyers around the world, today announced its inaugural Recommerce Day, which will be recognized on May 21, 2024 and will coincide with the release of the annual eBay Recommerce Report. Now in its f ...

I bought a used electric cargo bike on eBay for £3,300 but, when it arrived, I discovered a cut in the frame. I put the frame number into the national BikeRegister database, which confirmed it had been stolen.The seller did not reply when I contacted them, so I phoned the police and the bike was seized. I was given crime reference and property log numbers.As I had paid by bank transfer, I contacted my bank, First Direct, to try to get a refund. It asked for evidence that the bike had been seized, which I pr ...

Markets seem to have their mojo back to start the month of May. After suffering a downturn in April, equities are once again rallying on news of strong corporate earnings. Also, the indices have hopes that the U.S. Federal Reserve still plans to lower interest rates at some point this year. However, May is typically a precarious month for stocks and prone to volatility. The Wall Street saying “sell in May and go away” refers to the historical underperformance of equity markets during the six-month period fr ...