Wrapping up Q4 earnings, we look at the numbers and key takeaways for the online marketplace stocks, including eBay (NASDAQ:EBAY) and its peers.
Marketplaces have existed for centuries. Where once it was a main street in a small town or a mall in the suburbs, sellers benefitted from proximity to one another because they could draw customers by offering convenience and selection. Today, a myriad of online marketplaces fulfill that same role, aggregating large customer bases, which attracts commission-paying sellers, generating flywheel scale effects that feed back into further customer acquisition.
The 13 online marketplace stocks we track reported a mixed Q4. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was in line.
Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 22.8% since the latest earnings results.
eBay (NASDAQ:EBAY)
Originally known as the first online auction site, eBay (NASDAQ:EBAY) is one of the world’s largest online marketplaces.
eBay reported revenues of $2.58 billion, flat year on year. This print was in line with analysts’ expectations, but overall, it was a mixed quarter for the company with EPS guidance for next quarter slightly topping analysts’ expectations.
"eBay achieved three consecutive quarters of GMV growth to end 2024, and we took significant steps toward our vision of reinventing the future of ecommerce for enthusiasts," said Jamie Iannone, Chief Executive Officer at eBay.
The stock is down 10.2% since reporting and currently trades at $62.
Read our full report on eBay here, it’s free.
Best Q4: MercadoLibre (NASDAQ:MELI)
Originally started as an online auction platform, MercadoLibre (NASDAQ:MELI) is a one-stop e-commerce marketplace and fintech platform in Latin America.
MercadoLibre reported revenues of $6.06 billion, up 37.4% year on year, outperforming analysts’ expectations by 2.8%. The business had an exceptional quarter with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ number of unique active users estimates.
The stock is down 9% since reporting. It currently trades at $1,928.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it’s free.
Weakest Q4: Teladoc (NYSE:TDOC)
Founded to help people in rural areas get online medical consultations, Teladoc Health (NYSE:TDOC) is a telemedicine platform that facilitates remote doctor’s visits.
Teladoc reported revenues of $640.5 million, down 3% year on year, in line with analysts’ expectations. It was a softer quarter as it posted full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates.
Teladoc delivered the slowest revenue growth in the group. The company reported 93.8 million users, up 4.7% year on year. As expected, the stock is down 34.8% since the results and currently trades at $7.17.
Read our full analysis of Teladoc’s results here.
The RealReal (NASDAQ:REAL)
Founded by consignment store aficionado Julie Wainwright, The RealReal (NASDAQ: REAL) is an online marketplace for buying and selling secondhand luxury goods.
The RealReal reported revenues of $164 million, up 14.4% year on year. This number was in line with analysts’ expectations. Taking a step back, it was a slower quarter as it recorded full-year EBITDA guidance missing analysts’ expectations.
The RealReal scored the highest full-year guidance raise among its peers. The company reported 408,000 users, up 7.1% year on year. The stock is down 38.7% since reporting and currently trades at $4.88.
Read our full, actionable report on The RealReal here, it’s free.
ACV Auctions (NYSE:ACVA)
Founded in 2014, ACV Auctions (NASDAQ:ACVA) is an online auction marketplace for car dealers and wholesalers to buy and sell used cars.
ACV Auctions reported revenues of $159.5 million, up 34.8% year on year. This print topped analysts’ expectations by 2.4%. However, it was a slower quarter as it logged full-year EBITDA guidance missing analysts’ expectations.
ACV Auctions had the weakest full-year guidance update among its peers. The company reported 183,497 units sold, up 27.4% year on year. The stock is down 32% since reporting and currently trades at $14.01.
Read our full, actionable report on ACV Auctions here, it’s free.
Market Update
Thanks to the Fed’s series of rate hikes in 2022 and 2023, inflation has cooled significantly from its post-pandemic highs, drawing closer to the 2% goal. This disinflation has occurred without severely impacting economic growth, suggesting the success of a soft landing. The stock market thrived in 2024, spurred by recent rate cuts (0.5% in September and 0.25% in November), and a notable surge followed Donald Trump’s presidential election win in November, propelling indices to historic highs. Nonetheless, the outlook for 2025 remains clouded by potential trade policy changes and corporate tax discussions, which could impact business confidence and growth. The path forward holds both optimism and caution as new policies take shape.
Want to invest in winners with rock-solid fundamentals? Check out our Top 5 Growth Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
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