eBay's Gross Merchandise Volume Growth Rebounds to Pre-Pandemic Levels: Morgan Stanley

eBay's Gross Merchandise Volume (GMV) growth has rebounded to pre-pandemic levels, according to Morgan Stanley. The acceleration in growth is a positive sign for the company's recovery.

eBay Inc. (EBAY) has reported a significant rebound in its Gross Merchandise Volume (GMV) growth, according to Morgan Stanley. The acceleration in GMV growth is a positive indicator of the company's recovery from the economic impacts of the pandemic. This growth is driven by strength in specific categories such as cards and collectibles, as highlighted by Deepak Mathivanan of Cantor Fitzgerald [1].

In the second quarter, eBay's GMV grew by 4% compared to Street estimates, with total GMV reaching $19.5 billion. This performance was well-received by analysts, who raised their price targets and adjusted their ratings accordingly. For instance, Cantor Fitzgerald raised its price target from $69 to $85, maintaining a Neutral rating [1]. Similarly, Goldman Sachs lifted its price target from $53 to $72, reiterating a Sell rating, and Needham increased its target from $78 to $95, reaffirming a Hold rating [1].

eBay's performance was also attributed to the company's strategic initiatives and AI-driven personalized shopping experiences, which instilled confidence among analysts. The company's third-quarter GMV growth guidance of 3%-5% year-on-year further underscores this positive trajectory [1].

However, some analysts noted potential challenges ahead. Wedbush's Scott Devitt maintained a Neutral rating and price target of $72, highlighting potential disruptions from regulatory changes and margin compression [1]. Despite these challenges, eBay's robust performance in the second quarter suggests that the company is well-positioned for continued growth in the post-pandemic era.

References:
[1] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/07/46761900/ebay-impresses-on-earnings-but-wall-street-sees-trade-offs-ahead