Shares of e-commerce platform eBay (EBAY 0.96%) plunged on Thursday after the company reported financial results for the fourth quarter of 2024. At noon ET, eBay stock was down by 7%, but it had been down as much as 11% earlier in the day.

Flat top-line results for eBay continue

In Q4, eBay modestly surpassed guidance from management. The company's revenue of $2.6 billion was up 1% year over year. This nominal growth was thanks to a 4% increase in gross merchandise volume (the dollar value of sales on its platform). And for the year, its revenue of $10.3 billion was up 2% from 2023.

Investors seem to be more disappointed, however, with eBay's guidance for the first quarter of 2025. Management expects Q1 revenue to grow 1% at most. That growth rate has been normal in recent quarters. But investors had been hopeful that its growth would pick up because Meta Platforms is starting to allow eBay listings on its Facebook Marketplace.

In other words, eBay growth is as slow as it normally is. But investors' expectations were up because of the news from Meta Platforms. Now that guidance confirms ongoing slow growth, investors are disappointed and eBay stock has plunged.

At least shareholders are being rewarded

It may only be guiding for modest revenue growth in the coming quarter, but eBay is guiding for much better growth for its earnings per share (EPS). The company had EPS of $0.85 in the first quarter of 2024, but it expects EPS of about $1 for the upcoming Q1. That's almost 18% growth and it's thanks to a lower share count.

It turns out that eBay is quite profitable and is rewarding shareholders -- $1 billion in Q4 alone between share repurchases and its dividend. Incidentally, it just announced a 7% increase to its quarterly dividend. Therefore, while the top line isn't growing, eBay is stable enough to produce bottom-line growth and increased dividend payouts.

At the right price, that can make eBay stock a good buy. And if partnerships with Meta Platforms and others start paying off with growth, it could catalyze returns for shareholders.