eBay Reports Strong Quarterly Results Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 10 hours ago
0mins
Should l Buy EBAY?
Source: Benzinga
- Strong Performance: eBay reported quarterly GMV (Gross Merchandise Value), revenue, and margins that exceeded guidance, demonstrating the company's ongoing execution against strategic initiatives despite international macroeconomic pressures.
- Growth Outlook: Management guided for 2026 GMV to be similar to 2025, reflecting resilience and sustained growth potential in navigating market challenges, which further boosts investor confidence.
- Investment and Buyback: eBay announced a new $2 billion share buyback authorization, indicating confidence in future growth while continuing to increase investments in platform capabilities and product innovations to drive business expansion.
- Stable Operating Outlook: Analysts noted that eBay is likely to achieve sustained positive revenue growth momentum over the next 12-18 months, with a stable operating margin narrative that compounds shareholder returns, further solidifying its market position.
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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: 82.180
Low
60.00
Averages
95.00
High
112.00
Current: 82.180
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 Declares 6.9% Increase in Quarterly Dividend to $0.31
- Dividend Increase: eBay has announced a quarterly dividend increase from $0.29 to $0.31 per share, representing a 6.9% rise, which reflects the company's stable cash flow and boosts investor confidence, likely leading to a positive impact on stock price.
- Dividend Yield: The forward yield of 1.51% provides investors with a relatively stable return, further attracting income-seeking investors and enhancing the company's appeal in the market.
- Performance Outlook: eBay has set a GMV growth target of 10% to 12% for Q1 2026, indicating the company's commitment to advancing its C2C strategy, particularly following the acquisition of Depop, which is expected to further expand market share.
- Acquisition Strategy: eBay plans to acquire Depop for $1.2 billion in cash, a strategic move that will not only enhance its competitiveness in the second-hand market but also drive user growth on the platform, thereby improving overall business performance.
See More
Etsy Sells Secondhand Clothing Business to eBay for $1.2 Billion
- Asset Sale Agreement: Etsy has agreed to sell its secondhand clothing marketplace, Depop, to eBay for $1.2 billion in cash, resulting in a more than 9% increase in Etsy's stock price, reflecting positive market sentiment towards this strategic move.
- Strong User Base: Depop is popular among younger consumers, boasting 7 million active buyers and 3 million sellers, with annual gross merchandise sales in the U.S. surging nearly 60% in 2025, reaching approximately $1 billion globally, indicating robust momentum in the secondhand fashion market.
- Focus on Core Business: By selling Depop, Etsy can concentrate on expanding its e-commerce marketplace for unique and creative goods, with the expected $1.2 billion cash inflow representing about a quarter of its current market capitalization, which will be used for growth initiatives and stock buybacks.
- Future Growth Potential: eBay's CEO stated that Depop will be better positioned for long-term growth under eBay's umbrella, leveraging eBay's scale and operational capabilities to further solidify its market position in the pre-loved fashion sector.
See More
Significant Stock Movements Among Multiple Companies
- Klarna Guidance Miss: Klarna's shares plummeted about 25% as its first-quarter operating income guidance of $5 million to $35 million fell significantly short of Wall Street's expectation of $61.9 million, indicating potential challenges in future financing capabilities.
- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
- Omnicom Buyback Plan: Omnicom's shares surged 13% after reporting fourth-quarter revenue of $5.5 billion, a nearly 28% year-over-year increase, alongside a $5 billion share buyback authorization, reflecting strong financial performance and confidence in future growth.
- Deere Earnings Beat: Deere's stock rose 13% as it reported first-quarter earnings of $2.42 per share on $8 billion in revenue, both exceeding analyst expectations, indicating robust demand for agricultural equipment and potential market share growth ahead.
See More
eBay Reports Strong Quarterly Results Exceeding Expectations
- Strong Performance: eBay reported quarterly GMV (Gross Merchandise Value), revenue, and margins that exceeded guidance, demonstrating the company's ongoing execution against strategic initiatives despite international macroeconomic pressures.
- Growth Outlook: Management guided for 2026 GMV to be similar to 2025, reflecting resilience and sustained growth potential in navigating market challenges, which further boosts investor confidence.
- Investment and Buyback: eBay announced a new $2 billion share buyback authorization, indicating confidence in future growth while continuing to increase investments in platform capabilities and product innovations to drive business expansion.
- Stable Operating Outlook: Analysts noted that eBay is likely to achieve sustained positive revenue growth momentum over the next 12-18 months, with a stable operating margin narrative that compounds shareholder returns, further solidifying its market position.
See More
Etsy to Sell Depop to eBay for $1.2 Billion
- Depop Sale Announcement: Etsy has announced the sale of its fashion resale app Depop to eBay for $1.2 billion in cash, allowing the company to focus exclusively on its core marketplace, which is expected to enhance its competitive position.
- Mixed Earnings Report: Etsy's fourth-quarter earnings per share of $0.92 exceeded analyst expectations of $0.84, yet revenue of $882 million fell short of the $885 million forecast, indicating challenges in revenue growth amidst a competitive landscape.
- Market Dynamics: The company's gross merchandise sales declined 3.8% year-over-year to $3.59 billion, missing analyst estimates of $3.6 billion, primarily due to the impact of last year's sale of the Reverb marketplace, reflecting a trend of weakened consumer spending.
- User Growth Metrics: Active sellers grew by 7.7% year-over-year to 8.76 million, surpassing the estimated 8.5 million, while active buyers decreased by 2% to 93.54 million, indicating intensified market competition and evolving consumer behavior.
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 Declares 6.9% Increase in Quarterly Dividend to $0.31
- Dividend Increase: eBay has announced a quarterly dividend increase from $0.29 to $0.31 per share, representing a 6.9% rise, which reflects the company's stable cash flow and boosts investor confidence, likely leading to a positive impact on stock price.
- Dividend Yield: The forward yield of 1.51% provides investors with a relatively stable return, further attracting income-seeking investors and enhancing the company's appeal in the market.
- Performance Outlook: eBay has set a GMV growth target of 10% to 12% for Q1 2026, indicating the company's commitment to advancing its C2C strategy, particularly following the acquisition of Depop, which is expected to further expand market share.
- Acquisition Strategy: eBay plans to acquire Depop for $1.2 billion in cash, a strategic move that will not only enhance its competitiveness in the second-hand market but also drive user growth on the platform, thereby improving overall business performance.
See More
Etsy Sells Secondhand Clothing Business to eBay for $1.2 Billion
- Asset Sale Agreement: Etsy has agreed to sell its secondhand clothing marketplace, Depop, to eBay for $1.2 billion in cash, resulting in a more than 9% increase in Etsy's stock price, reflecting positive market sentiment towards this strategic move.
- Strong User Base: Depop is popular among younger consumers, boasting 7 million active buyers and 3 million sellers, with annual gross merchandise sales in the U.S. surging nearly 60% in 2025, reaching approximately $1 billion globally, indicating robust momentum in the secondhand fashion market.
- Focus on Core Business: By selling Depop, Etsy can concentrate on expanding its e-commerce marketplace for unique and creative goods, with the expected $1.2 billion cash inflow representing about a quarter of its current market capitalization, which will be used for growth initiatives and stock buybacks.
- Future Growth Potential: eBay's CEO stated that Depop will be better positioned for long-term growth under eBay's umbrella, leveraging eBay's scale and operational capabilities to further solidify its market position in the pre-loved fashion sector.
See More
Significant Stock Movements Among Multiple Companies
- Klarna Guidance Miss: Klarna's shares plummeted about 25% as its first-quarter operating income guidance of $5 million to $35 million fell significantly short of Wall Street's expectation of $61.9 million, indicating potential challenges in future financing capabilities.
- Blue Owl Loan Sale: Blue Owl Capital's stock dropped nearly 10% after announcing the sale of $1.4 billion in loans at 99.7% of par value, with proceeds aimed at debt repayment and capital return, highlighting liquidity pressures and a halt on redemptions for retail investors.
- Omnicom Buyback Plan: Omnicom's shares surged 13% after reporting fourth-quarter revenue of $5.5 billion, a nearly 28% year-over-year increase, alongside a $5 billion share buyback authorization, reflecting strong financial performance and confidence in future growth.
- Deere Earnings Beat: Deere's stock rose 13% as it reported first-quarter earnings of $2.42 per share on $8 billion in revenue, both exceeding analyst expectations, indicating robust demand for agricultural equipment and potential market share growth ahead.
See More
eBay Reports Strong Quarterly Results Exceeding Expectations
- Strong Performance: eBay reported quarterly GMV (Gross Merchandise Value), revenue, and margins that exceeded guidance, demonstrating the company's ongoing execution against strategic initiatives despite international macroeconomic pressures.
- Growth Outlook: Management guided for 2026 GMV to be similar to 2025, reflecting resilience and sustained growth potential in navigating market challenges, which further boosts investor confidence.
- Investment and Buyback: eBay announced a new $2 billion share buyback authorization, indicating confidence in future growth while continuing to increase investments in platform capabilities and product innovations to drive business expansion.
- Stable Operating Outlook: Analysts noted that eBay is likely to achieve sustained positive revenue growth momentum over the next 12-18 months, with a stable operating margin narrative that compounds shareholder returns, further solidifying its market position.
See More
Etsy to Sell Depop to eBay for $1.2 Billion
- Depop Sale Announcement: Etsy has announced the sale of its fashion resale app Depop to eBay for $1.2 billion in cash, allowing the company to focus exclusively on its core marketplace, which is expected to enhance its competitive position.
- Mixed Earnings Report: Etsy's fourth-quarter earnings per share of $0.92 exceeded analyst expectations of $0.84, yet revenue of $882 million fell short of the $885 million forecast, indicating challenges in revenue growth amidst a competitive landscape.
- Market Dynamics: The company's gross merchandise sales declined 3.8% year-over-year to $3.59 billion, missing analyst estimates of $3.6 billion, primarily due to the impact of last year's sale of the Reverb marketplace, reflecting a trend of weakened consumer spending.
- User Growth Metrics: Active sellers grew by 7.7% year-over-year to 8.76 million, surpassing the estimated 8.5 million, while active buyers decreased by 2% to 93.54 million, indicating intensified market competition and evolving consumer behavior.
See More
