Let’s dig into the relative performance of Sea (NYSE: SE) and its peers as we unravel the now-completed Q2 online marketplace earnings season.
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 12.1% on average 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 $5.26 billion, up 32.5% year on year. This print exceeded analysts’ expectations by 5%. Overall, it was an exceptional quarter for the company with an impressive beat of analysts’ paying users and EBITDA estimates.
“The momentum from our strong start to 2025 has continued into the second quarter. All three of our businesses have delivered robust, healthy growth, giving us greater confidence of delivering another great year,” said Forrest Li, Sea’s Chairman and Chief Executive Officer.
Interestingly, the stock is up 23.7% since reporting and currently trades at $181.21.
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 a solid beat of analysts’ EBITDA and paid downloads estimates.
The market seems happy with the results as the stock is up 25.7% since reporting. It currently trades at $24.90.
Is now the time to buy Shutterstock? Access our full analysis of the earnings results here, it’s free for active Edge members.
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 disappointing quarter as it posted a significant miss of analysts’ number of marketplace units estimates and revenue guidance for next quarter missing analysts’ expectations significantly.
ACV Auctions delivered the highest full-year guidance raise but had the weakest performance against analyst estimates in the group. The company reported 210,429 units sold, up 12.8% year on year. As expected, the stock is down 33.3% since the results and currently trades at $8.90.
Read our full analysis of ACV Auctions’s results here.
LegalZoom (NASDAQ: LZ)
Founded by famous lawyer Robert Shapiro, LegalZoom (NASDAQ: LZ) offers online legal services and documentation assistance for individuals and businesses.
LegalZoom reported revenues of $192.5 million, up 8.5% year on year. This number topped analysts’ expectations by 5.4%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ revenue estimates and revenue guidance for next quarter beating analysts’ expectations.
The company reported 1.96 million users, up 21.5% year on year. The stock is up 23.4% since reporting and currently trades at $10.34.
Read our full, actionable report on LegalZoom here, it’s free for active Edge members.
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 beat analysts’ expectations by 3.1%. It was a strong quarter as it also logged a solid beat of analysts’ EBITDA estimates and revenue guidance for next quarter topping analysts’ expectations.
The company reported 134 million active buyers, up 1.5% year on year. The stock is up 18.2% since reporting and currently trades at $91.48.
Read our full, actionable report on eBay here, it’s free for active Edge members.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
Want to invest in winners with rock-solid fundamentals? Check out our 9 Best Market-Beating Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here.
