eBay Inc. (NASDAQ:EBAY) integrates artificial intelligence (AI) tools to enhance platform efficiency and user experience.
Barclays upgrades eBay’s rating to “Overweight” and raises the price target from $64 to $72.
Despite a slight stock price decrease, eBay reports a revenue of $2.58 billion and an EPS of $1.25, surpassing Wall Street expectations.
eBay Inc. (NASDAQ:EBAY) is a global e-commerce leader, facilitating consumer-to-consumer and business-to-consumer sales through its platform. Competing with giants like Amazon and Alibaba, eBay has carved a niche with its auction-style sales and diverse product offerings. Recently, Barclays updated its rating for eBay to “Overweight,” maintaining its previous grade, and raised the price target from $64 to $72. At the time of this announcement, the stock was priced at $69.14.
In 2024, eBay underwent significant transformation by integrating artificial intelligence (AI) tools across its operations. This strategic move aimed to enhance the experience for employees, sellers, and buyers. The company’s CEO, Jamie Iannone, highlighted the deployment of eBay’s enhanced core AI platform, which facilitated the launch of its first proprietary large language models (LLMs). These models were developed using eBay’s extensive eCommerce data, aiming to perform specialized tasks more efficiently.
The introduction of AI tools has significantly boosted productivity in engineering and customer service. eBay also improved its platform’s search capabilities, enhancing the buyer and seller experiences. By pretraining leading open-source models on its dataset, eBay increased their accuracy for specific use cases. This innovation led to the launch of numerous customer-facing features, improving search, payments, marketing, and focus categories.
eBay’s financial performance in Q4 2024 reflected its strategic advancements. The company reported a revenue of $2.58 billion, marking a 0.7% increase from the previous year. Earnings per share (EPS) rose to $1.25, up from $1.07, exceeding Wall Street expectations. The revenue slightly surpassed the Zacks Consensus Estimate by 0.02%, and the EPS beat the consensus estimate of $1.20 by 4.17%.
Despite the positive financial results, eBay’s stock price experienced a slight decrease of 2.52%, settling at $69.14. The stock fluctuated between $68.84 and $71.61, with the latter marking its highest price over the past year. eBay’s market capitalization stands at approximately $33.12 billion, with a trading volume of 8,791,461 shares on the NASDAQ.
