10 Cheap Internet Stocks to Buy According to Hedge Funds

6. eBay Inc. (NASDAQ:EBAY)

Forward P/E: 12.8

Number of Hedge Fund Holders: 45

eBay Inc. (NASDAQ:EBAY) is a global ecommerce company that connects buyers and sellers through its marketplace platforms in over 190 markets worldwide. It offers buyer, seller, and developer tools and transaction processing, user interfaces, and database and network applications allowing users to complete site transactions safely and reliably.

2024 proved to be a transformative year for the company from an innovation viewpoint. Its enhanced core AI platform enabled eBay Inc. (NASDAQ:EBAY) to launch its first proprietary large language models, boost productivity in key areas like engineering and customer service, and improve search efficacy.

The company continued top-line growth in fiscal Q4 2024, undergoing a GMV growth of more than 2% to $19.3 billion. This growth was attributed to solid consumer demand during the shortened holiday shopping season and strong execution of the company’s fiscal Q4 2024 roadmap. eBay Inc. (NASDAQ:EBAY) also rose non-GAAP earnings per share (EPS) by 15% to $4.88, creating significant shareholder value and returning nearly $3.7 billion of capital through repurchases and dividends.

The company is thus quite profitable and is rewarding shareholders in the same vein: around $1 billion in fiscal Q4 2024 alone through its dividend and share repurchases. Incidentally, the company recently announced a 7% increase in its quarterly dividend. Therefore, eBay Inc. (NASDAQ:EBAY) is stable enough to increase dividend payouts and continue producing bottom-line growth.