Is eBay Inc. (EBAY) is a good stock to buy now?

Is EBAY a good stock to buy? We came across a cheap thesis on eBay Inc. in the ARMR Report Be Smart Money’s Substack by Bret Rosenthal. In this article, we will summarize the bull thesis on EBAY. Share of eBay Inc. it was $110.35 as of June 1st^St. EBAY trailing and forward P/E were 25.48 and 18.25 respectively according to Yahoo Finance.

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eBay Inc. (EBAY) is increasingly viewed as a higher quality resale platform than the legacy e-commerce market, its investment case focuses on its superior position in secondary market capital, strong free cash flow generation, and multiple catalysts to enhance value creation. The company uses a light marketplace model that facilitates the discovery, pricing, and trust of pre-owned and specialty goods without managing inventory or managing extensive transportation networks.

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With programs like the Authenticity Guarantee and AI-powered Magical Listings, eBay has strengthened user trust while reducing seller friction and improving marketplace efficiency. The business delivered strong results for the first quarter of 2026, with revenue up 17% year over year to $3.1 billion, net sales up 14% to $22.2 billion, focus segments such as collectibles, automotive, and fashion growing 24%, and non-GAAP operating margins up 29.3%. The company generated $898 million in free cash flow during the quarter and continues to return capital through dividends and share repurchases, supported by a multiple of approximately 15x earnings.

Management’s strategy is focused on expanding the high-value enthusiast categories, scaling AI-driven tools, and growing first-party advertising, which brought in $581 million in quarterly revenue and is growing faster than the underlying market activity. eBay’s competitive advantage stems from its scale, natural seller reputation, cross-category liquidity, and the inability of larger competitors to effectively offer a diverse, dynamic inventory.

The bullish thesis is also supported by an unsolicited $125 per share acquisition proposal from GameStop, which represents a significant upside from recent trading levels and creates potential for significant repeat or competing bids. Combined with expanding revenue streams, strong cash flow, and margin growth opportunities, eBay offers an attractive risk-reward profile with reasonable leverage and relatively limited downside.

Previously, we included a bearish thesis on eBay Inc. (EBAY) by Kostadin Ristovski, ACCA in November 2024, which highlighted stagnant GMV growth, limited growth opportunities, and concerns that the stock was considered overvalued compared to its long-term prospects. EBAY’s stock price is up about 79.43% since our coverage. Bret Rosenthal has the opposite view but emphasizes eBay’s remarketing leadership, AI-driven monetization, advertising growth, and high acquisition-driven potential.

EBay Inc. not in our list of 40 Most Popular Stocks Among Hedge Funds. According to our database, 61 hedge fund portfolios held EBAY at the end of the first quarter, up from 59 in the previous quarter. While we acknowledge the risks and potential of EBAY as an investment, our confidence is based on the belief that other AI stocks have great promise to deliver high returns and do so within a short period of time. If you are looking for an AI stock that is more promising than EBAY and has 10,000% potential, check out our report on this. The highest number of AIs.

Disclosure: None.