IB Net Payout Yields Model

eBay: Confusing Quarter, Cheap Stock


  • eBay reported solid Q2'21 results, but the numbers were confusing due to the divestiture of the Korean business.
  • The company successfully grew revenues despite a slowdown in transactions as demand normalizes.
  • The stock is cheap at just 15x '22 EPS estimates, while the company is set to boost earnings via massive share buybacks.
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A confluence of events makes the Q2'21 results for eBay (NASDAQ:EBAY) difficult to analyze. After selling the Classifieds and eBay Korea businesses, the company is now flush with cash while still loaded with other investments. My investment thesis remains very Bullish on the e-commerce stock during this turnaround period.

Read the full article on Seeking Alpha. 

Disclosure: Long EBAY. Please review the disclaimer page for more details. 

Update - August 28

Not a big price target boost on a stock crossing $76 Friday. eBay might hit that target in the next few weeks. 

  • Piper Sandler reiterates a Buy rating on eBay (NASDAQ:EBAY) and bumps up its price target to $85 from $79.
  • Analyst Thomas Champion and team update discounted cash flow estimates on EBAY to account for the Adyen warrant value $1.1B and a post-tax value of eBay's Adevinta equity stake at current prices.

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