EBay Earnings: Turnaround Narrative Gains Steam With Constructive Outlook; Shares Slightly Cheap

We're fans of narrow-moat eBay's focus category and advertising strategies, which appear set to drive gross merchandise volume growth in 2024 after years of macro-driven declines. While our long-term forecasts for 23%-24% operating margin and 4%-5% revenue growth are unchanged, we plan to raise our $49 fair value estimate by a mid-single-digit percentage to reflect quarterly outperformance, time value, and the planned sale of $2 billion of the company's Adevinta stake in 2024. The shares look slightly undervalued even after a rise in aftermarket trading.