eBay went astray, but is there hidden value in the Circular Economy?

March 27, 2019

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eBay faces a turning point as activist investor Elliot Management called out the online marketplace for “execution missteps and unclear focus” in a recent letter to eBay’s board of directors. We propose that if eBay return to its roots as a company by focusing on attracting new sellers of used goods, the company can regain share taken from start-ups and incumbent ventures. In this brief, we also discuss the following:

  • The carbon footprint of eBay and other US eCommerce companies, focusing on shipping-related emissions (Scope 3), and margin headwind scenarios should those externalities be internalized at various carbon prices
  • How eBay’s core business contributes to the Circular Economy and thus has an advantage with respect to structural long-term growth potential
    Combining positive ESG momentum and cheap valuation to uncover attractive investment opportunities

Material Categories
Data Security and Customer Privacy
Lifecycle Impacts of Products and Services
Recruitment, Development, and Retention