2024-04-07 10:34:35 ET
Summary
- eBay's stock has risen 20% this year, but there are concerns about its future upside and ability to compete with larger e-commerce platforms like Amazon.
- Core risks include flat GMV growth, higher expenses, capital returns at risk, and a large net debt position.
- eBay's Q4 earnings showed some positive highlights, such as growth in advertising revenue, but profitability declined. Investors should remain cautious and consider locking in gains here.
It's been a surprisingly strong year for stocks this year as investors have banked on rate cuts to drive re-inflation of valuation multiples, which are already high enough as they are. Even some surprise laggards have enjoyed rebounds this year, including and especially eBay ( EBAY ), the once-dominant auction site that was at one point one of the most prominent names in e-commerce....
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eBay: This Year's Rally Will Fade