eBay Raises Price Target to $80 Following Q2 Earnings Beat

eBay (EBAY) received a Hold rating from Wedbush and TD Cowen, while Goldman Sachs maintained a Sell rating. The company's shares closed at $77.56. eBay has a one-year high of $83.53 and a one-year low of $53.74. Corporate insider sentiment is negative, with an increase in insiders selling their shares.

eBay Inc. (EBAY) reported strong second-quarter (Q2) 2025 financial performance, beating market expectations. The company's gross merchandise volume (GMV) grew by 4% year-on-year, driven by robust performance in focus categories such as cards and collectibles [2]. However, the company faces mixed analyst sentiment and growing concerns over insider selling activity.

Analysts from Wedbush and TD Cowen assigned a Hold rating to eBay, while Goldman Sachs maintained a Sell rating. Wedbush analyst Scott Devitt noted that eBay's GMV grew by 6.0% year-on-year to $19.5 billion, beating Street expectations of 2.5% [3]. However, he also pointed out potential disruptions from regulatory changes and expected margin compression in the third quarter. Meanwhile, Goldman Sachs analyst Eric Sheridan reiterated a Sell rating, citing strong Q2 performance but expressing concerns about the company's long-term growth prospects [3].

eBay's shares closed at $77.56 on July 2, 2025, after rallying during earnings season. The company's one-year high is $83.53, and the one-year low is $53.74. Corporate insider sentiment remains negative, with an increase in insiders selling their shares. The Altman Z-Score of 5.43 indicates strong financial health, but insider selling activity has been significant, with 12 transactions over the past three months [2].

eBay's financial health is supported by a robust revenue growth rate of 9.3% over the past year and a 5-year growth rate of 17.7%. The company maintains a strong operating margin of 22.33% and a net margin of 19.78%. However, there is a noted decline in gross margin, averaging a -2.2% decrease per year [2]. The company's valuation metrics suggest it is trading near historical highs, with a P/E ratio of 18.47, a P/S ratio of 3.68, and a P/B ratio of 7.25 [2].

In conclusion, while eBay demonstrates strong financial health and a solid market position, investors should remain cautious of the sustainability of its recent growth and the potential impact of insider selling activity. The company's valuation metrics suggest it is trading near historical highs, which may influence future investment decisions.

References:
[1] https://www.businesspost.ie/article/ebay-delivers-strong-q2-2025-financial-performance-beating-expectations/
[2] https://www.gurufocus.com/news/3021265/ebay-ebay-receives-increased-price-target-from-morgan-stanley
[3] https://www.benzinga.com/analyst-stock-ratings/reiteration/25/07/46761900/ebay-impresses-on-earnings-but-wall-street-sees-trade-offs-ahead