eBay Inc

EBAY: XNAS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$12.00	Bfqmrl	Rnjfcksfp

We Like eBay's Turnaround Narrative but Soft Margin Guidance Justifies Negative Earnings Reaction

Sean Dunlop

Feb 23, 2023

Narrow-moat eBay posted solid fourth-quarter results, with $2.51 billion in sales and $1.07 in adjusted EPS edging our $2.45 billion and $1.03 estimates, respectively, but saw guided margin pressure guidance send its shares down 5%-6% in afterhours trading. We view the market's reaction as appropriate and expect to lower our own $60 fair value estimate by a mid-single-digit percentage as we digest results.

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