EBAY - Embedded Expectations Analysis - 2021 09 08
eBay Inc. (EBAY:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 20.2x Uniform P/E, implying bearish expectations for the firm. Although management may have concerns about ad revenues, Afterpay, and gross merchandise volume (GMV), market expectations are too bearish, suggesting equity upside is warranted.Specifically, management may lack confidence in their ability to address unpaid item issues, maintain ad revenue growth, and sustain their luxury watch business growth. In addition, they may be overstating the potential of Afterpay and seller financing, and they may be concerned about their sellers' ability to drive repeat business. Furthermore, they may have concerns about enabling sellers to fund and distribute their own coupons, the potential of their managed payments partnerships, and opportunities to gain United States GMV share.
Although management may have concerns about ad revenues, Afterpay, and gross merchandise volume (GMV), market expectations are too bearish given the firm's steady growth in core markets. As such, equity upside is warranted for EBAY.
eBay is a global commerce provider, which includes its Marketplace, StubHub and Classifieds platforms. The company's Marketplace platforms include its online marketplace located at www.ebay.com, its localized counterparts and the eBay suite of mobile apps. The company's StubHub platforms include its online ticket platform located at www.stubhub.com, its localized counterparts and the StubHub mobile apps. These platforms connect fans with their favorite sporting events, shows and artists and enable them to buy and sell tickets whenever and wherever they want. The company's Classifieds platforms include a collection of brands such as mobile.de, Kijiji, Gumtree, Marktplaats, eBay Kleinanzeigen and others.
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