EBAYNEUTRAL

EBAY Gross Margin Analysis

73.5%

Updated 201h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after subtracting the direct costs of producing goods, so EBAY's 74.0% means $0.74 of every revenue dollar remains to cover other expenses.

Sector Performance

87th percentile

EBAY

73.5%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

74.0%(Aug 2026)

→ Stable

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Deep Analysis

Gross margin is the percentage of revenue left after subtracting the direct costs of producing goods, so EBAY's 74.0% means $0.74 of every revenue dollar remains to cover other expenses.

This sits far above the sector median of 44.6%, placing EBAY in the 89th percentile among its peers. However, the trend is unavailable: both the year-over-year change and quarter-over-quarter change are N/A, so no direction can be inferred from the historical value of 74.0% alone. The combination of a very high level with no observable trend means the investment risk centers on whether that margin is sustainable, but there is no recent data to prove a positive or negative shift. Given the lack of trend information, the strong margin level alone is not enough to shift the overall NEUTRAL verdict. This metric supports the NEUTRAL stance by showing an existing strength without evidence of improvement or deterioration.

Frequently Asked Questions

What does the Gross Margin tell investors about EBAY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are EBAY's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.