eBay(EBAY) The Motley Fool·2025-02-27 19:14Core 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 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 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].