Ebay Inc - Fundamental Investment Case

Qualitative Concerns
•  Increased competition in both New as wells as Used product categories
•  Competition from the  likes  of Amazon and Walmart pressuring the commission rates
•  New entrants such as 5Mile, Letgo etc. are growing rapidly
•  Management’s turnaround plans seem more of a necessity and replication of industry-trends
•  Both sellers as well as buyers seem to be migrating away to competing platforms

Fundamental Concerns
•  History and future expectations of continued market share losses
•  One-time line items overshadow the challenges facing the core business
•  Declining take rate and operating margins
•  A large portion of guidance and analyst estimates is dependent on FX expectations
•  eBay’s both higher growth businesses – StubHub and Classifieds – have significant challenges ahead, in our view