eBay announced its fourth quarter results on Wednesday, January 31, reporting a 9% increase in net revenue to $2.6 billion. Growth came from both the transaction and marketing services businesses. Similar to the September quarter, the highest growing revenue stream was classifieds with 20% y-o-y growth in revenues in the two most recent quarters. The other positive for eBay was StubHub revenues growing in double digits after a slowdown in Q2 and Q3 owing to a weaker event landscape.
We have a $34 price estimate for eBay, which is around 15% lower than the current market price. eBay’s stock price has fluctuated between $30 and $40 in the last year.
