<< back
Research
Publication Date: 26 Nov 2018 - By Robert P. By Robert P.Equity Fundamental Equity USA Technology
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