eBay Stock Gains Momentum as Depop Price Climbs

TLDR

Table of Contents

eBay’s second-quarter revenue rose 15% to $3.13 billion, beating analyst estimates.
Adjusted earnings reached $1.60 per share, above the expected $1.51.
Gross merchandise volume increased 15% to $22.4 billion.
eBay raised its 2026 GMV growth forecast to between 11.5% and 12.5%.
The company expects full-year adjusted earnings per share to grow 10% to 12%.

eBay ( EBAY) raised its full-year outlook after second-quarter revenue and earnings beat analyst estimates. The stronger forecast supported interest in EBay stock, although the company paid more than planned to complete its Depop purchase.

eBay Inc., EBAY

The online marketplace reported revenue of $3.13 billion, up 15% from a year earlier. Adjusted earnings reached $1.60 per share, above the $1.51 analysts expected. Gross merchandise volume rose 15% to $22.4 billion, beating forecasts of $21.56 billion.

EBay Stock Gains Support From Higher Forecast

eBay now expects full-year gross merchandise volume to grow between 11.5% and 12.5% in 2026. Its earlier forecast called for growth of 7% to 7.5%. The company also expects adjusted earnings per share to rise between 10% and 12%.

Chief Financial Officer Peggy Alford said stronger business momentum led the company to lift its sales and earnings outlook. The updated forecast includes Depop’s expected contribution, giving investors a clearer view of the combined business. Management said the revised targets reflect trading trends, buyer activity, advertising growth, and the expected addition of Depop revenue.

Depop Purchase Price Rises to $1.4 Billion

eBay completed its purchase of Depop on July 30. The fashion resale platform serves many Gen Z and Millennial users and expands eBay’s reach in secondhand clothing and social commerce.

eBay and Etsy announced the deal in February at $1.2 billion in cash, subject to adjustments. The final cost reached $1.4 billion, including preliminary adjustments. Wolfe Research analysts noted that the higher purchase cost could weigh on near-term earnings.

Third-Quarter Earnings Guidance Misses Estimates

For the third quarter, eBay expects revenue between $3.07 billion and $3.12 billion. That range sits above the $2.97 billion analyst estimate and reflects continued sales growth across the marketplace.

However, eBay expects adjusted earnings of $1.36 to $1.42 per share. Analysts had forecast $1.45. The lower earnings range shows that Depop costs and other expenses may limit profit growth during the quarter.

Advertising Revenue and Buyer Numbers Rise

First-party advertising revenue increased 25% to $570 million. Active buyers reached 136 million, up 2% from a year earlier. These figures showed steady customer activity and stronger advertising demand.

eBay returned $448 million to shareholders during the quarter, including $310 million through share buybacks and $138 million in dividends. The company also remains subject to Ryan Cohen’s unsolicited $125-per-share takeover proposal, which eBay’s board rejected as neither credible nor attractive.

✨ Limited Time Offer