Why Is eBay (EBAY) Down 1.5% Since Last Earnings Report?

A month has gone by since the last earnings report for eBay (EBAY). Shares have lost about 1.5% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is eBay due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.eBay Q3 Earnings & Revenues Surpass Estimates, Both Increase Y/YeBay Inc. reported third-quarter 2025 non-GAAP earnings of $1.36 per share, which beat the Zacks Consensus Estimate by 2.26%. The bottom line increased 14.3% year over year.Net revenues of $2.82 billion beat the Zacks Consensus Estimate by 2.9%. The figure increased 9.5% from the year-ago quarter on a reported basis and 8% on an FX-neutral basis.eBay’s first-party advertising products generated revenues of $496 million in the reported quarter, up 25% on an as-reported basis and 23% on an FX-neutral basis.Total advertising offerings yielded $525 million in revenues, representing 2.6% of gross merchandise volume (GMV).EBAY’s active buyer base, which was pinned at 134 million at the end of the third quarter, increased 1% year over year, missing the consensus mark by 0.4%.GMV Details for EBAYEBAY’s total GMV of $20.11 billion in the reported quarter exhibited year-over-year growth of 10% on a reported basis and 8% on an FX-neutral basis. The reported GMV surpassed the Zacks Consensus Estimate of $19.42 billion.The total GMV is categorized into two parts. U.S. GMV totaled $9.87 billion, accounting for 49.1% of the total GMV. The figure rose 13% year over year. International GMV was $10.23 billion, accounting for 50.9% of the total GMV. The figure increased 7% year over year.EBAY’s Q3 Operating DetailsOperating expenses of $1.42 billion grew 13.5% year over year. As a percentage of net revenues, the figure expanded 180 basis points (bps) from the year-ago quarter to 48.7%.The non-GAAP operating margin was 27.1% in the third quarter, contracting 10 bps year over year.EBAY’s Balance Sheet & Cash FlowAs of Sept. 30, 2025, cash equivalents and short-term investments were $3.38 billion, down from $3.75 billion as of June 30, 2025.Long-term debt remained unchanged at $5 billion at the end of the third quarter of 2025, compared with the prior quarter.Cash flow from operating activities was $934 million in the third quarter, a sharp turnaround from negative $307 million in the previous quarter.eBay reported free cash flow from continuing operations of $803 million in the third quarter.The company repurchased $625 million worth of shares and paid out cash dividends of $132 million in the reported quarter. eBay had approximately $1.4 billion remaining under its buyback authorization as of Sept. 30, 2025.EBAY’s Q4 & FY25 GuidanceFor the fourth quarter of 2025, eBay expects revenues in the range of $2.83 billion to $2.89 billion. On an FX-neutral basis, revenue growth is anticipated to be 8-10%.The non-GAAP operating margin for the fourth quarter of 2025 is expected to be between 25.8% and 26.3%.GMV for the fourth quarter is likely to be in the range of $20.5-$20.9 billion.Non-GAAP earnings per share are anticipated to be between $1.31 and $1.36.For 2025, the company expects revenues between $10.97 billion and $11.03 billion. On an FX-neutral basis, revenue growth is anticipated to be 6-6%.Non-GAAP operating margin is expected to be between 27.7% and 27.8%.GMV for the full year is likely to be in the range of $78.9-$79.3 billion.Non-GAAP earnings per share are projected to be between $5.42 and $5.47.How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended downward during the past month.VGM ScoresCurrently, eBay has a average Growth Score of C, a score with the same score on the momentum front. Following the exact same course, the stock has a grade of C on the value side, putting it in the middle 20% for value investors.Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, eBay has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. 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