Longer-Term Questions Persist for eBay
Despite the positives in eBay’s results, competitive headwinds are building, and investors should wait for a better price before diving in, writes Morningstar’s R.J. Hottovy.
Nevertheless, we still have lingering questions about GMV growth in the U.S. (up just 3%) and a deceleration in items sold growth (7%, versus a trailing 12-month average of 9%), which we attribute to greater competition for small and midsize business, or SMB, sellers, particularly Amazon. With
We retain our $28 fair value estimate. Despite positives from structured data efforts, international growth, and $2.4 billion in remaining share-repurchase authorization, we'd prefer a wider margin of safety, given potential competitive headwinds.
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