Is EBAY a good stock to buy? We came across a bullish thesis on eBay Inc. on Rijnberk InvestInsights’s Substack by Daan | InvestInsights. In this article, we will summarize the bulls’ thesis on EBAY. eBay Inc.’s share was trading at $107.13 as of April 20th. EBAY’s trailing and forward P/E were 24.57 and 17.79 respectively according to Yahoo Finance.
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eBay presents a compelling investment case as a dominant, resilient platform in the global resale economy. Despite its perception as an aging e-commerce relic, the company processes over $80 billion in annual gross merchandise volume (GMV) and operates a two-sided marketplace connecting individual sellers, professional merchants, and small businesses with buyers worldwide. Unlike Amazon, eBay avoids first-party retail operations and fulfillment risks, deriving revenue primarily from transaction take rates, promoted listings, and payment services.
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This asset-light structure produces high operating margins, strong free cash flow, and capital-efficient growth. Strategic refocusing on high-value “focus categories” such as collectibles, refurbished electronics, auto parts, and luxury goods has allowed eBay to trade scale for quality, investing in authentication, grading, and seller tools to deepen trust, improve conversion, and monetize transactions beyond mere volume.
Q4/FY25 results reflected this approach, with GMV up 8% YoY to $21.2 billion, revenue up 13% to $2.96 billion, and EPS rising 13% to $1.41, driven by advertising growth, high-margin services, and strong U.S. performance. Enthusiast buyers, though only 12% of the user base, account for 70% of GMV, providing durable revenue. The recent $1.2 billion acquisition of Depop strengthens eBay’s foothold with Gen Z buyers and the fast-growing circular fashion market, while integrating Depop into eBay’s infrastructure offers monetization and operational leverage, though near-term margin dilution is expected.
Guidance for 2026 indicates continued GMV growth of 9-10% and EPS growth of roughly 10%, with medium-term prospects for mid-single-digit GMV growth, margin expansion, and low-teens EPS growth. At 15x earnings, 16x FCF, and a structurally higher-margin, predictable business model, eBay trades attractively relative to peers, with multiple catalysts for revenue, margin, and shareholder returns, including buybacks and dividends, making it a uniquely durable platform investment.
Previously, we covered a bearish thesis on eBay Inc. (EBAY) by Kostadin Ristovski, ACCA in November 2024, which highlighted flat GMV, limited revenue growth in key markets, high valuation, and risks in capital allocation. EBAY’s stock price has appreciated by approximately 74.19% since our coverage. Daan | InvestInsights shares a contrarian view but emphasizes eBay’s resilient platform, strong free cash flow, and growth from strategic focus and acquisitions.
EBay Inc. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 59 hedge fund portfolios held EBAY at the end of the fourth quarter which was 56 in the previous quarter. While we acknowledge the risk and potential of EBAY as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than EBAY and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
