Online Marketplace Stocks Q1 Recap: Benchmarking eBay (NASDAQ:EBAY)
As the Q1 earnings season comes to a close, it’s time to take stock of this quarter's best and worst performers in the online marketplace industry, 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 15 online marketplace stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 4.4%. while next quarter's revenue guidance was 2.4% above consensus. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, and online marketplace stocks have held roughly steady amidst all this, with share prices up 0.7% on average since the previous 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 $2.56 billion, up 1.8% year on year, in line with analysts' expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and slow revenue growth.
"eBay's Q1 results marked a strong start to 2024 as we continue to make progress toward our goal of sustainable GMV growth," said Jamie Iannone, Chief Executive Officer at eBay.
The stock is up 3.6% since the results and currently trades at $52.89.
Read our full report on eBay here, it's free.
Best Q1: 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 $4.33 billion, up 36% year on year, outperforming analysts' expectations by 12.1%. It was a stunning quarter for the company, with an impressive beat of analysts' revenue estimates and exceptional revenue growth.
The stock is up 12.5% since the results and currently trades at $1,695.99.
Is now the time to buy MercadoLibre? Access our full analysis of the earnings results here, it's free.
Slowest Q1: CarGurus (NASDAQ:CARG)
Bringing transparency to a sometimes opaque process, CarGurus (NASDAQ:CARG) is a digital marketplace where auto dealers can connect with potential customers and where car buyers can browse, purchase, and obtain financing.
CarGurus reported revenues of $215.8 million, down 7% year on year, falling short of analysts' expectations by 0.5%. It was a weak quarter for the company, with slow revenue growth and underwhelming revenue guidance for the next quarter.
The stock is up 3.3% since the results and currently trades at $23.
Read our full analysis of CarGurus's results here.
EverQuote (NASDAQ:EVER)
Aiming to simplify a once complicated process, EverQuote (NASDAQ:EVER) is an online insurance marketplace where consumers can compare and purchase various types of insurance from different providers
EverQuote reported revenues of $91.07 million, down 16.6% year on year, surpassing analysts' expectations by 13.4%. It was a very strong quarter for the company, with an impressive beat of analysts' revenue estimates and optimistic revenue guidance for the next quarter.
EverQuote had the slowest revenue growth among its peers. The stock is up 12.7% since the results and currently trades at $24.06.
Read our full, actionable report on EverQuote here, it's free.
ACV Auctions (NASDAQ: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 $145.7 million, up 21.8% year on year, surpassing analysts' expectations by 1.2%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter.
The company reported 174,631 units sold, up 15.2% year on year. The stock is up 11.1% since the results and currently trades at $19.25.
Read our full, actionable report on ACV Auctions here, it's free.
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