EBay Inc. (NASDAQ: EBAY) runs one of the largest and most successful e-commerce platforms that connects buyers and sellers across the world. The company's site allows sellers to operate online stores and sell items directly to buyers.
The company, which was founded in 1995, has also developed and acquired several online marketplaces including StubHub and Classifieds. As of market close on Feb. 16, 2024, the company hasa market cap of $22.5billion.That growth has made several of its largest shareholders, including its founder, very wealthy.
According to the company, for the trailing twelve months before Feb. 16, 2024,eBaydeliveredrevenueof $10.1 billion, with net profits of $2.7 billion.
Key Takeaways
- eBay has grown to become a household name in online shopping and auctions, generating over $10 billion per year.
- The company was founded by French-born Pierre Omidyar in 1995. He is now the largest insider shareholder with more than 45 million shares held.
- 90% of the company shares, however, are held by mutual funds and other institutional shareholders.
Top 3 Individual Insider Shareholders
The largest individual owners of eBay are company insiders, such as executives and directors. The following list includes only direct ownership, not stock options.
Pierre Omidyar
Pierre Omidyar founded eBay in 1995 and is company's second-largest shareholder with 23 million shares, according to an SEC Form 4 filing in August 2020. At current prices, his shares are worth over $1 billion, accounting for about 4.4% of the company's equity.Omidyar started the company, which he originally called AuctionWeb, from his home on Labor Day weekendwhen he began writing code for an idea to bring buyers and sellers together in an open marketplace. He hired his first employee in June 1996 to help manage the company's explosive growth, and he renamed the company eBay in September 1997.
Omidyar founded a philanthropic venture named the Omidyar Network in 2004. As part of this organization's efforts, he gave $100 million to Tufts University, from which he earned a bachelor of science in computer science. He serves as an advisor to Neoteny Co. Ltd. and as commissioner of the President’s Commission on White House Fellowships. He continues to serve eBay's board of directors as a Director Emeritus.
Devin Wenig
Devin Wenig is eBay’s former President, CEO, and currently the third-largest shareholder with 1,042,892 shares as of his latest Form 4 filing dated Sept. 15, 2019. Wenig wasthe thirdCEO in Ebay'shistory, serving from July 2015 to September 2019. While Wenig has been CEO, eBay's Gross Merchandise Volume has grown from $60.3 billion in 2011 to $90 billion in 2019.
Jamie Iannone
Jamie Iannone is the current President and CEO of eBay, having assumed that role in 2020 after Wenig's the previous year. Iannone holds 410,467 shares of eBay, according to the company's DEF-14A proxy statement for 2023. Prior to assuming that role, Iannone worked as the chief operating officer of Walmart eCommerce and CEO of SamsClub.com.
Tip 3 Institutional Shareholders
While company insiders may hold a lot of eBay shares, most are held by institutional investors. The following are the largest such shareholders as of Feb. 16, 2024.
Vanguard Group
Vanguard Group holds 58,404,254 shares of eBay, accounting for about 11.25% of the company's total float. However, it does not hold these shares on its own behalf—they are held for millions of retail investors, who invest in Vanguard's mutual funds and exchange-traded funds. Altogether, Vanguard has $7.6 trillion under management. One of the largest funds is the Vanguard Total Stock Market Index Fund, with $1.5 trillion in net assets.
BlackRock, Inc.
BlackRock, the world's largest asset manager, is also the second-largest shareholder of eBay shares. It has 43,874,921 shares of eBay as of Dec. 30, 2023, accounting for about 8.45% of the total float. These holdings are worth $1.9 billion as of February 2024. Like Vanguard, most of those shares are held in the portfolios of hundreds of mutual funds and exchange-traded funds that BlackRock operates on behalf of its retail clients. Altogether, the company has $9.1 trillion in assets under management.
State Street Corporation
State Street holds 23,886,259 shares of eBay, accounting for 4.6% of the company. The company's stake is worth just over $1 billion, as of February 2024. State Street operates ETFs and mutual funds that invest in companies like eBay. One of the largest State Street funds is the SPDR S&P 500 ETF Trust, with total assets of $491 million.
How Much Does eBay Sell Every Year?
EBay's Gross Merchandise Volume, a metric of total sales, was $74 billion in 2022, according to the most recent quarterly report.
How Do You Keep Safe on eBay?
According to eBay, the most important security measure is to change your password regularly and keep your contact information up to date. In addition, beware of spoof emails, pop-ups, and deceptive websites that look like eBay but have a slightly different URL. Be suspicious of phone calls, emails, or other messages that ask you for personal details or to log into your account.
How Much Is eBay Worth?
EBay closed at $44.01 on Feb. 23, 2024, giving it a market capitalization of over $22.8 billion.
The Bottom Line
EBay, Inc. is one of the earliest and most successful ecommerce websites, after it was founded by Pierre Omidyar in 1995. The largest shareholders are asset managers, like BlackRock and Vanguard. Company insiders also command large stakes, including the founder.
