eBay Inc.

Despite ongoing macroeconomic challenges, eBay generated better-than-expected results across all major financial and operational indicators including revenues and earnings. The company’s emphasis on non-new-in-season goods, breakthroughs in its focused category strategy, site-wide innovation for sellers and buyers, and investments in trusted experiences have increased the longevity of its marketplace and kept eBay on track for long-term growth. eBay’s growth is particularly noticeable in its targeted categories, which had low single-digit year-over-year growth. Motors, Parts, and Accessories, their largest targeted area, advanced a few points sequentially and was the main driver of GMV growth in Q1. Besides that, in February, eBay launched the eBay Guaranteed Fit program, giving millions of P&A customers the assurance that their auto parts will fit or their money will be refunded. The company also revamped its tire installation process on desktop and mobile online and extended the enhanced procedure to mobile apps. Although the process of linking online sales to offline installations in P&A is still in its early stages, these initial launches have already significantly increased the attach rate of installation services to tire purchases. In addition, eBay intends to launch a new program, Certified by Brand, for luxury products. We give eBay a ‘Hold’ rating with a revised target price.