eBay Stock Rises After Double Beat, Strong Guidance
eBay Inc. (NASDAQ:EBAY) shares are trading higher Thursday after the company reported better-than-expected fourth-quarter financial results and issued first-quarter adjusted earnings per share and sales guidance above estimates.
- eBay stock is charging ahead with explosive momentum. What’s behind EBAY gains?
Double Beat, Operational Strength And Strong Guidance
eBay reported adjusted earnings per share of $1.41, beating the consensus estimate of $1.35. In addition, the company posted revenue of $2.96 billion, beating the consensus estimate of $2.87 billion.
Gross merchandise volume increased 10% year-over-year to $21.2 billion, helping drive total revenue growth of 15% year-over-year.
The company generated $595 million of operating cash flow and $478 million of free cash flow from continuing operations in the quarter. eBay ended the year with $4.8 billion in cash, cash equivalents and non-equity investments.
"We have built significant momentum across our strategic priorities, delivering meaningful growth and reinforcing our leadership in recommerce. As we continue to harness AI to elevate the customer experience worldwide, eBay is in the strongest position it has been in years," said Jamie Iannone, CEO at eBay.
Looking ahead, the company sees first-quarter adjusted earnings per share of $1.53 to $1.59, versus the consensus estimate of $1.48. Furthermore, eBay expects revenue of $3.00 billion to $3.05 billion, versus the consensus estimate of $2.79 billion.
eBay Agrees To Acquire Depop
In connection with earnings, eBay announced it entered into a definitive agreement with Etsy Inc. (NYSE:ETSY) to acquire fashion marketplace Depop in an all-cash transaction valued at approximately $1.2 billion.
The company expects the transaction to close in the second quarter of 2026 and intends to fund the deal with cash on hand.
"Depop has built a trusted, social-forward marketplace with strong momentum in the pre-loved fashion category, and we are confident that as part of eBay, Depop will be even more well-positioned for long-term growth, benefiting from our scale, complementary offerings, and operational capabilities," Ianonne said.
Consensus Ratings And Analyst Action
eBay has a consensus rating of Neutral and a consensus price target of $93.25. Recent analyst action include:
- Evercore ISI Group analyst Mark Mahaney maintained an In-Line rating on eBay and raised the price target from $93 to $94.
- Cantor Fitzgerald analyst Deepak Mathivanan reiterated a Neutral rating on eBay and maintained a $90 price target.
- B of A Securities analyst Justin Post maintained a Neutral rating on eBay and raised the price target from $100 to $102.
- Needham analyst Bernie McTernan maintained a Buy rating on eBay and raised the price target from $115 to $122.
eBay Stock Climbs Higher
EBAY Price Action: At the time of wiring, eBay shares are trading 4.15% higher at $85.58, according to data from Benzinga Pro.
Image via Shutterstock
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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