As the Q4 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 Sea (NYSE: SE) 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 20.1% since the latest earnings results.
Sea (NYSE: SE)
Founded in 2009 and a publicly traded company since 2017, Sea (NYSE: SE) started as a gaming platform and has since expanded to offer a variety of services such as e-commerce, digital payments, and financial services across Southeast Asia.
Sea reported revenues of $4.95 billion, up 36.9% year on year. This print exceeded analysts’ expectations by 6.1%. Overall, it was a strong quarter for the company with decent growth in its users and an impressive beat of analysts’ EBITDA estimates.
The stock is down 8.7% since reporting and currently trades at $120.84.
We think Sea is a good business, but is it a buy today? Read our full report 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 1.1% since reporting. It currently trades at $2,095.
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.
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 36.6% since the results and currently trades at $6.97.
Read our full analysis of Teladoc’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 $147.5 million, up 165% year on year. This number surpassed analysts’ expectations by 10%. It was an exceptional quarter as it also recorded EBITDA guidance for next quarter exceeding analysts’ expectations.
EverQuote pulled off the fastest revenue growth among its peers. The stock is up 9.3% since reporting and currently trades at $22.03.
Read our full, actionable report on EverQuote here, it’s free.
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. Aside from that, it was a mixed quarter as it also logged EPS guidance for next quarter slightly topping analysts’ expectations.
The company reported 134 million active buyers, up 1.5% year on year. The stock is down 5.4% since reporting and currently trades at $65.35.
Read our full, actionable report on eBay here, it’s free.
Market Update
The Fed’s interest rate hikes throughout 2022 and 2023 have successfully cooled post-pandemic inflation, bringing it closer to the 2% target. Inflationary pressures have eased without tipping the economy into a recession, suggesting a soft landing. This stability, paired with recent rate cuts (0.5% in September 2024 and 0.25% in November 2024), fueled a strong year for the stock market in 2024. The markets surged further after Donald Trump’s presidential victory in November, with major indices reaching record highs in the days following the election. Still, questions remain about the direction of economic policy, as potential tariffs and corporate tax changes add uncertainty for 2025.
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