[breadcrumb_custom]

Stock not to be skipped: eBay Inc. (EBAY)

Shares of eBay Inc. (NASDAQ: EBAY) are trading more than 43% lower than their 52-week highs. This is one of the lowest rates seen in the previous five years. The general issue is putting pressure on eBay prices, as visitors revert to established retailers. However, the trend toward more online buying should benefit eBay’s long-term prospects.

eBay’s business strategy enables it to remain profitable while also remaining more flexible in its decision-making. The platform does not have its own inventory for online sales or delivery services. Instead, the firm serves as a conduit between buyers and sellers.

#1 Small-Cap Uranium Stock for Ultra-Fast Gains in 2024

We've uncovered THE ONE small-cap uranium stock that has unearthed a near-surface, high-grade uranium discovery in the Saudi Arabia of Uranium — Canada's prolific Athabasca Basin. Best of all, this small-cap uranium stock is currently flying just below Wall Street's radar… giving you the early-entry opportunity around US$0.30 per share. But that won't last long. Drills are turning right now with results set to be released to the market very, very soon.

Learn all about it in this brand new FREE online report.
Sponsored

As a consequence, eBay’s operating margin grew from 20.25% in 2012 to 28.05% in 2021. Because of acquisitions and sales, revenue and profitability were more variable during this period. However, eBay’s earnings per share have increased by an average of 23.6% per year over the last decade.

The reopening of the economy has slightly shifted shopper preferences, and many of them have begun to purchase online less frequently than even a year earlier. As a result, since peaking in the first quarter of 2021, eBay’s gross merchandise value has decreased for five straight quarters.

A portion of the sales loss is countered by an increase in the fees eBay collects from each transaction on the site. From 10.3% in the first quarter of 2021 to 12.4% in the second quarter of 2022, this percentage has climbed. For every $100 million in sales, a corporation earns an additional $2 million in commissions. For the fiscal quarter ending June 30, eBay generated $2.3 billion in commissions from gross goods sales.

Despite the fact that customers have returned to physical stores, the long-term trend of online purchasing has not changed. According to Statista, internet purchasing in the United States will increase to 22% in 2025 from 14% in 2020. As a result, while eBay has lost market capitalization in recent months, it remains one of the primary benefactors of the e-commerce business’s long-term success.

Leave a Reply

Your email address will not be published. Required fields are marked *

On Key

Related Posts