eBay Acquires Depop to Attract Younger Consumers
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy EBAY?
Source: stocktwits
- Acquisition Deal: eBay's acquisition of Depop for $1.2 billion aims to enhance its connection with younger fashion consumers, thereby accelerating its consumer-to-consumer strategy and strengthening its position in the resale market.
- Financial Performance: eBay's fourth-quarter revenue rose 15% to $3 billion, exceeding Wall Street's expectations of $2.87 billion, indicating a robust performance and a rebound in market demand within the e-commerce sector.
- User Growth: Depop's gross merchandise sales approached $1 billion in 2025, with 7 million active buyers, nearly 90% of whom are under 34, highlighting its strong appeal among younger consumers.
- Market Reaction: eBay's shares jumped nearly 6% in after-hours trading following the acquisition announcement, reflecting investor optimism about the company's growth potential, particularly in expanding its reach to younger consumer demographics.
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Analyst Views on EBAY
Wall Street analysts forecast EBAY stock price to rise
8 Analyst Rating
2 Buy
5 Hold
1 Sell
Hold
Current: 79.950
Low
60.00
Averages
95.00
High
112.00
Current: 79.950
Low
60.00
Averages
95.00
High
112.00
About EBAY
eBay Inc. is a global commerce company. The Company's technology empowers buyers and sellers in more than 190 markets around the world. The Company's business includes its online marketplace located at www.ebay.com and its localized counterparts, its off-platform marketplaces and its suite of mobile apps. It provides a number of features for its sellers and buyers that align with its approach of leveraging technology, including generative AI, to enhance the marketplace experience for its customers. For sellers, the Company is focused on simplifying their business processes to help drive their sales. The Company offers the eBay International Shipping program for sellers in the United States. For buyers, it is changing the way they find inventory through discovery, personalization and other experiences. It launched Explore, an AI-powered shopping feed enabling users to browse a list of personalized recommendations based on their interests, style preferences, and sizes.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
eBay Q4 Earnings Expectations and Dividend Insights
- Earnings Release Announcement: eBay is set to release its Q4 earnings after the market closes on February 18, with analysts forecasting earnings of $1.35 per share, indicating a steady improvement in the company's profitability compared to $1.25 per share last year.
- Revenue Growth Expectations: According to Benzinga Pro, eBay's quarterly revenue is expected to reach $2.87 billion, up from $2.58 billion in the previous year, reflecting the company's competitive position and sales growth potential in the market.
- Analyst Rating Adjustment: UBS analyst Stephen Ju has maintained a Neutral rating on eBay while lowering the price target from $95 to $93, indicating a cautious outlook on the company's future performance that may affect investor confidence.
- Dividend Yield Analysis: With an annual dividend yield of 1.45% and a quarterly dividend of $0.29, investors aiming for $500 monthly in dividends would need to invest approximately $413,501, highlighting the attractiveness and investment threshold of the company's dividend policy.
See More
eBay Acquires Depop to Attract Younger Consumers
- Acquisition Deal: eBay's acquisition of Depop for $1.2 billion aims to enhance its connection with younger fashion consumers, thereby accelerating its consumer-to-consumer strategy and strengthening its position in the resale market.
- Financial Performance: eBay's fourth-quarter revenue rose 15% to $3 billion, exceeding Wall Street's expectations of $2.87 billion, indicating a robust performance and a rebound in market demand within the e-commerce sector.
- User Growth: Depop's gross merchandise sales approached $1 billion in 2025, with 7 million active buyers, nearly 90% of whom are under 34, highlighting its strong appeal among younger consumers.
- Market Reaction: eBay's shares jumped nearly 6% in after-hours trading following the acquisition announcement, reflecting investor optimism about the company's growth potential, particularly in expanding its reach to younger consumer demographics.
See More
eBay Reports Strong Q4 2025 Earnings with Strategic Acquisition
- Performance Exceeds Expectations: eBay's Q4 2025 gross merchandise volume (GMV) grew nearly 8% to $21.2 billion, with revenue increasing over 13% to $2.96 billion, reflecting strong performance in the U.S. market that is expected to drive sustained growth moving forward.
- Strategic Acquisition: eBay announced a definitive agreement to acquire Depop for approximately $1.2 billion, viewing it as a move that will enhance its C2C value proposition and expand its market share in the circular fashion segment, with an expected contribution of 1 to 2 percentage points to GMV growth in 2026.
- Innovation-Driven Growth: The introduction of AI-powered magical listings and direct collaborations with brands are seen as key growth drivers, particularly against the backdrop of increasing consumer demand for second-hand goods and sustainable fashion.
- Future Outlook: The CFO provided guidance for Q1 2026, expecting GMV between $21.5 billion and $21.9 billion, with revenue forecasted between $3 billion and $3.05 billion, demonstrating the company's confidence in future growth, especially in the continued expansion of core categories and C2C business.
See More
Multiple Companies Shine in After-Hours Trading
- DoorDash Order Growth: DoorDash reported a 32% year-over-year increase in total orders and a 38% rise in revenue for Q4, leading to a 10% stock price jump despite missing overall earnings expectations, indicating market confidence in its growth potential.
- Figma's Strong Performance: Figma's adjusted earnings of 8 cents per share and revenue of $303.8 million in Q4 surpassed analyst expectations, with a 40% year-over-year growth, resulting in a 16% stock price increase, showcasing its robust competitiveness in the design software market.
- Etsy Transaction Dynamics: Etsy's agreement to sell Depop for $1.2 billion in cash led to a nearly 16% stock price increase, while eBay's stock rose over 6%, reflecting positive market sentiment towards the transaction and its potential to strengthen Etsy's market position.
- Carvana Earnings Decline: Carvana's adjusted EBITDA of $511 million fell short of the $539.2 million expected by analysts, causing a 15% drop in stock price, highlighting concerns over its profitability and market performance.
See More
Etsy to Sell Depop to eBay for $1.2 Billion
- Significant Transaction Value: Etsy has entered into a definitive agreement with eBay to sell its fashion marketplace Depop for approximately $1.2 billion in cash, which will provide Etsy with funds for general corporate purposes, ongoing share repurchases, and investments in its core marketplace, thereby enhancing financial flexibility.
- Positive Market Reaction: Etsy's shares surged 14.83% in after-hours trading, reaching $50.55 per share, reflecting investor optimism regarding the transaction and indicating strong market confidence in Etsy's future growth potential.
- Strong Growth Momentum for Depop: Depop is projected to achieve approximately $1 billion in annual gross merchandise sales by 2025, with nearly 60% year-over-year growth in the U.S., highlighting its popularity among younger consumers and enhancing the strategic value of the transaction.
- Clear Future Outlook: Etsy CEO Kruti Patel Goyal stated that this transaction allows the company to focus on growth opportunities within the Etsy marketplace, emphasizing the commitment to enhancing buyer and seller experiences, which is expected to yield positive returns for shareholders.
See More
eBay Acquires Depop, the Popular Secondhand Clothing Platform Among Gen Z, for $1.2 Billion
- eBay's Acquisition: eBay plans to acquire Depop, a popular secondhand clothing platform among Gen Z, for $1.2 billion in cash.
- Source of Acquisition: The purchase is being made from Etsy, an online marketplace known for handmade and vintage items.
See More
eBay Q4 Earnings Expectations and Dividend Insights
- Earnings Release Announcement: eBay is set to release its Q4 earnings after the market closes on February 18, with analysts forecasting earnings of $1.35 per share, indicating a steady improvement in the company's profitability compared to $1.25 per share last year.
- Revenue Growth Expectations: According to Benzinga Pro, eBay's quarterly revenue is expected to reach $2.87 billion, up from $2.58 billion in the previous year, reflecting the company's competitive position and sales growth potential in the market.
- Analyst Rating Adjustment: UBS analyst Stephen Ju has maintained a Neutral rating on eBay while lowering the price target from $95 to $93, indicating a cautious outlook on the company's future performance that may affect investor confidence.
- Dividend Yield Analysis: With an annual dividend yield of 1.45% and a quarterly dividend of $0.29, investors aiming for $500 monthly in dividends would need to invest approximately $413,501, highlighting the attractiveness and investment threshold of the company's dividend policy.
See More
eBay Acquires Depop to Attract Younger Consumers
- Acquisition Deal: eBay's acquisition of Depop for $1.2 billion aims to enhance its connection with younger fashion consumers, thereby accelerating its consumer-to-consumer strategy and strengthening its position in the resale market.
- Financial Performance: eBay's fourth-quarter revenue rose 15% to $3 billion, exceeding Wall Street's expectations of $2.87 billion, indicating a robust performance and a rebound in market demand within the e-commerce sector.
- User Growth: Depop's gross merchandise sales approached $1 billion in 2025, with 7 million active buyers, nearly 90% of whom are under 34, highlighting its strong appeal among younger consumers.
- Market Reaction: eBay's shares jumped nearly 6% in after-hours trading following the acquisition announcement, reflecting investor optimism about the company's growth potential, particularly in expanding its reach to younger consumer demographics.
See More
eBay Reports Strong Q4 2025 Earnings with Strategic Acquisition
- Performance Exceeds Expectations: eBay's Q4 2025 gross merchandise volume (GMV) grew nearly 8% to $21.2 billion, with revenue increasing over 13% to $2.96 billion, reflecting strong performance in the U.S. market that is expected to drive sustained growth moving forward.
- Strategic Acquisition: eBay announced a definitive agreement to acquire Depop for approximately $1.2 billion, viewing it as a move that will enhance its C2C value proposition and expand its market share in the circular fashion segment, with an expected contribution of 1 to 2 percentage points to GMV growth in 2026.
- Innovation-Driven Growth: The introduction of AI-powered magical listings and direct collaborations with brands are seen as key growth drivers, particularly against the backdrop of increasing consumer demand for second-hand goods and sustainable fashion.
- Future Outlook: The CFO provided guidance for Q1 2026, expecting GMV between $21.5 billion and $21.9 billion, with revenue forecasted between $3 billion and $3.05 billion, demonstrating the company's confidence in future growth, especially in the continued expansion of core categories and C2C business.
See More
Multiple Companies Shine in After-Hours Trading
- DoorDash Order Growth: DoorDash reported a 32% year-over-year increase in total orders and a 38% rise in revenue for Q4, leading to a 10% stock price jump despite missing overall earnings expectations, indicating market confidence in its growth potential.
- Figma's Strong Performance: Figma's adjusted earnings of 8 cents per share and revenue of $303.8 million in Q4 surpassed analyst expectations, with a 40% year-over-year growth, resulting in a 16% stock price increase, showcasing its robust competitiveness in the design software market.
- Etsy Transaction Dynamics: Etsy's agreement to sell Depop for $1.2 billion in cash led to a nearly 16% stock price increase, while eBay's stock rose over 6%, reflecting positive market sentiment towards the transaction and its potential to strengthen Etsy's market position.
- Carvana Earnings Decline: Carvana's adjusted EBITDA of $511 million fell short of the $539.2 million expected by analysts, causing a 15% drop in stock price, highlighting concerns over its profitability and market performance.
See More
Etsy to Sell Depop to eBay for $1.2 Billion
- Significant Transaction Value: Etsy has entered into a definitive agreement with eBay to sell its fashion marketplace Depop for approximately $1.2 billion in cash, which will provide Etsy with funds for general corporate purposes, ongoing share repurchases, and investments in its core marketplace, thereby enhancing financial flexibility.
- Positive Market Reaction: Etsy's shares surged 14.83% in after-hours trading, reaching $50.55 per share, reflecting investor optimism regarding the transaction and indicating strong market confidence in Etsy's future growth potential.
- Strong Growth Momentum for Depop: Depop is projected to achieve approximately $1 billion in annual gross merchandise sales by 2025, with nearly 60% year-over-year growth in the U.S., highlighting its popularity among younger consumers and enhancing the strategic value of the transaction.
- Clear Future Outlook: Etsy CEO Kruti Patel Goyal stated that this transaction allows the company to focus on growth opportunities within the Etsy marketplace, emphasizing the commitment to enhancing buyer and seller experiences, which is expected to yield positive returns for shareholders.
See More
eBay Acquires Depop, the Popular Secondhand Clothing Platform Among Gen Z, for $1.2 Billion
- eBay's Acquisition: eBay plans to acquire Depop, a popular secondhand clothing platform among Gen Z, for $1.2 billion in cash.
- Source of Acquisition: The purchase is being made from Etsy, an online marketplace known for handmade and vintage items.
See More
