Is eBay Stock Outperforming the S&P 500?
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eBay Inc. (EBAY), based in California, operates marketplace platforms that connect buyers and sellers, enabling them to list, sell, and buy various products. With a market cap of $30.7 billion, eBay’s operations span the Americas, Europe, Asia, and internationally.
Companies worth $10 billion or more are considered "large-cap" stocks, and eBay fits right into that category, reflecting its substantial size, stability, and influence in the online retail industry. eBay capitalizes on its robust global marketplace and brand recognition to reinforce its standing as a top e-commerce platform. Operating in almost 190 markets, with a substantial share of its gross merchandise volume coming from international sales, the company enjoys the advantages of a broad and loyal customer base.
Shares of EBAY are currently trading 5.7% below their 52-week high of $67.80, which they hit on Oct. 15. The stock has gained 1.2% over the past three months, compared to the S&P 500 Index’s ($SPX) 2.7% returns over the same time frame.
In the long term, EBAY has outpaced the SPX. The stock is up 46.6% on a YTD basis, and the shares have returned 46.4% over the past 52 weeks. In comparison, SPX has rallied 23% in 2024 and 23% over the past year.
To confirm the bullish price trend, EBAY has been trading above its 50-day moving average since last couple trading sessions and over its 200-day moving average since late February.
eBay’s solid price momentum this year stems from its robust e-commerce model, experiencing growing momentum in its online marketplace and rising demand for refurbished products and collectibles. Its growth initiatives, aimed at enhancing the experiences of both sellers and buyers, are expected to drive further gains in eBay's stock performance.
On Dec. 10, eBay shares dropped more than 2% after Jeffries downgraded the stock to “Underperform” from “Hold” with a price target of $52.
In the fiercely competitive internet retail industry, top rival Etsy, Inc. (ETSY) has underperformed EBAY, falling 29.5% on a YTD basis and down 34.3% over the past 52 weeks.
Given its outperformance relative to the broader market, analysts are cautiously optimistic about EBAY's prospects. The stock has a consensus rating of "Moderate Buy" from 29 analysts in coverage, and it currently trades above its mean price target of $63.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.