Etsy Sells Depop to eBay for $1.2 Billion, Shares Surge
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
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Should l Buy EBAY?
Source: CNBC
- Significant Transaction Value: Etsy announced the sale of its secondhand clothing platform Depop to eBay for approximately $1.2 billion in cash, a notable increase from the $1.62 billion it paid five years ago, reflecting strong market interest and growth potential in the secondhand clothing sector.
- Youthful User Base: With about 90% of Depop's users under the age of 34, this transaction allows Etsy to focus on its core marketplace, further attracting younger buyers and enhancing its competitive position in the rapidly growing secondhand market.
- Strategic Shift: Etsy has acquired several niche online marketplaces in recent years as part of a
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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.
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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.
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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
Etsy Sells Depop to eBay for $1.2 Billion, Shares Surge
- Significant Transaction Value: Etsy announced the sale of its secondhand clothing platform Depop to eBay for approximately $1.2 billion in cash, a notable increase from the $1.62 billion it paid five years ago, reflecting strong market interest and growth potential in the secondhand clothing sector.
- Youthful User Base: With about 90% of Depop's users under the age of 34, this transaction allows Etsy to focus on its core marketplace, further attracting younger buyers and enhancing its competitive position in the rapidly growing secondhand market.
- Strategic Shift: Etsy has acquired several niche online marketplaces in recent years as part of a
See More
eBay Reports Strong Q4 Earnings, Exceeds Estimates
- Strong Financial Performance: eBay reported Q4 revenue of $2.97 billion, surpassing estimates of $2.89 billion and reflecting a 15% year-over-year growth, indicating robust momentum in the e-commerce sector.
- Earnings Beat Expectations: The adjusted EPS of $1.41 exceeded analyst expectations of $1.35, showcasing the company's sustained profitability and bolstering investor confidence.
- Robust Cash Flow: The company generated $595 million in operating cash flow and $478 million in free cash flow during the quarter, indicating a healthy financial position that supports future investments.
- Strategic Acquisition Announcement: eBay revealed plans to acquire Depop from Etsy for cash, with the transaction expected to close in Q2 2026, enhancing eBay's competitiveness in the pre-loved fashion market.
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
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
Etsy Sells Depop to eBay for $1.2 Billion, Shares Surge
- Significant Transaction Value: Etsy announced the sale of its secondhand clothing platform Depop to eBay for approximately $1.2 billion in cash, a notable increase from the $1.62 billion it paid five years ago, reflecting strong market interest and growth potential in the secondhand clothing sector.
- Youthful User Base: With about 90% of Depop's users under the age of 34, this transaction allows Etsy to focus on its core marketplace, further attracting younger buyers and enhancing its competitive position in the rapidly growing secondhand market.
- Strategic Shift: Etsy has acquired several niche online marketplaces in recent years as part of a
See More
eBay Reports Strong Q4 Earnings, Exceeds Estimates
- Strong Financial Performance: eBay reported Q4 revenue of $2.97 billion, surpassing estimates of $2.89 billion and reflecting a 15% year-over-year growth, indicating robust momentum in the e-commerce sector.
- Earnings Beat Expectations: The adjusted EPS of $1.41 exceeded analyst expectations of $1.35, showcasing the company's sustained profitability and bolstering investor confidence.
- Robust Cash Flow: The company generated $595 million in operating cash flow and $478 million in free cash flow during the quarter, indicating a healthy financial position that supports future investments.
- Strategic Acquisition Announcement: eBay revealed plans to acquire Depop from Etsy for cash, with the transaction expected to close in Q2 2026, enhancing eBay's competitiveness in the pre-loved fashion market.
See More
