Looking back on online marketplace stocks’ Q2 earnings, we examine this quarter’s best and worst performers, 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 14 online marketplace stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 4.7% while next quarter’s revenue guidance was in line.
Luckily, online marketplace stocks have performed well with share prices up 14.6% on average 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 $2.73 billion, up 6.1% year on year. This print exceeded analysts’ expectations by 3.1%. Despite the top-line beat, it was still a mixed quarter for the company with an impressive beat of analysts’ EBITDA estimates but a slight miss of analysts’ number of active buyers estimates.
Interestingly, the stock is up 18% since reporting and currently trades at $91.34.
Is now the time to buy eBay? Access our full analysis of the earnings results here, it’s free.
Best Q2: Shutterstock (NYSE: SSTK)
Originally featuring a library that included many of founder Jon Oringer’s photos, Shutterstock (NYSE: SSTK) is now a digital platform where customers can license and use hundreds of millions of pieces of content.
Shutterstock reported revenues of $267 million, up 21.3% year on year, outperforming analysts’ expectations by 7.5%. The business had a stunning quarter with an impressive beat of analysts’ EBITDA and paid downloads estimates.
The market seems happy with the results as the stock is up 11.8% since reporting. It currently trades at $22.14.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: 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 $193.7 million, up 20.6% year on year, falling short of analysts’ expectations by 1.2%. It was a softer quarter as it posted a significant miss of analysts’ marketplace units estimates and EBITDA guidance for next quarter missing analysts’ expectations.
ACV Auctions delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. The company reported 210,429 units sold, up 12.8% year on year. As expected, the stock is down 22% since the results and currently trades at $10.40.
Read our full analysis of ACV Auctions’s results here.
Instacart (NASDAQ: CART)
Powering more than one billion grocery orders since its founding, Instacart (NASDAQ: CART) is an online grocery shopping and delivery platform that partners with retailers to help customers shop from local stores through its app or website.
Instacart reported revenues of $914 million, up 11.1% year on year. This number surpassed analysts’ expectations by 2%. It was a very strong quarter as it also put up a solid beat of analysts’ EBITDA estimates.
The stock is down 16.1% since reporting and currently trades at $41.50.
Read our full, actionable report on Instacart here, it’s free.
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 $631.9 million, down 1.6% year on year. This print topped analysts’ expectations by 1.6%. Aside from that, it was a mixed quarter as it also produced a solid beat of analysts’ sales and operating profit estimates. On the other hand, EPS and EBITDA guidance for the full year missed analysts’ expectations.
The company reported 102.4 million users, up 10.8% year on year. The stock is up 5.7% since reporting and currently trades at $7.95.
Read our full, actionable report on Teladoc here, it’s free.
Market Update
Thanks to the Fed’s rate hikes in 2022 and 2023, inflation has been on a steady path downward, easing back toward that 2% sweet spot. Fortunately (miraculously to some), all this tightening didn’t send the economy tumbling into a recession, so here we are, cautiously celebrating a soft landing. The cherry on top? Recent rate cuts (half a point in September 2024, a quarter in November) have propped up markets, especially after Trump’s November win lit a fire under major indices and sent them to all-time highs. However, there’s still plenty to ponder — tariffs, corporate tax cuts, and what 2025 might hold for the economy.
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