eBay(US:EBAY) The Motley Fool·2025-12-11 15:15Core Insights - eBay's stock has increased by over 30% this year, driven by trading card games and collectibles, positioning it to outperform the S&P 500 in 2026 [1][4] - The introduction of eBay Live, a livestreaming feature, is seen as a transformative opportunity for the platform, focusing on product reviews and tutorials [2][7] Financial Performance - eBay's gross merchandise value (GMV) rose by 10.1% year-over-year, reaching $20.1 billion in Q3, indicating increased shopping frequency on the platform [4][6] - Revenue increased by 9%, reflecting the positive impact of the growing GMV [4] eBay Live and Engagement - eBay Live has the potential to enhance product presentations and increase overall revenue by keeping users engaged for longer periods [7] - The GMV run rate for eBay Live more than quintupled in Q3, as more creators utilize livestreaming to drive product sales [6] Advertising Revenue Growth - eBay Live could significantly boost advertising revenue by increasing user engagement, with the ad network generating $525 million in Q3, a 21% year-over-year increase [8][9] - Ads currently account for nearly 20% of eBay's total revenue, with expectations for this percentage to rise as ad growth outpaces overall revenue growth [9][10] Valuation and Future Outlook - eBay's stock trades at a price-to-earnings ratio of 18, with potential for a higher valuation if the growth catalysts translate into accelerated revenue growth [10]