Cantor Fitzgerald has kept its Neutral rating and $90 price target on eBay Inc., a decision the firm reached following the company’s fourth-quarter financial disclosure. That $90 target sits close to InvestingPro’s Fair Value assessment, which indicates the stock is currently trading near fair valuation.
In the fourth quarter, eBay reported revenue and non-GAAP earnings per share that topped Wall Street expectations by 3% and 4%, respectively. On a foreign exchange neutral basis, gross merchandise volume expanded 8% year-over-year, a result the company attributed to strength in its Focus categories along with contributions from collectibles. Over the trailing twelve months, eBay delivered a 71.5% gross profit margin and 7.95% revenue growth.
For fiscal 2026, management guided GMV growth and non-GAAP operating income growth broadly in line with fiscal 2025, at 6% on a foreign exchange neutral basis and 13%, respectively. The company also announced a plan to acquire Depop from Etsy Inc. for approximately $1.2 billion. While the firm has moderate leverage, eBay reported a strong cash position and indicated it appears able to finance the transaction while retaining financial flexibility.
Shareholder-return activity remains a notable part of the company’s capital allocation. eBay said it intends to repurchase $2 billion of its shares in fiscal 2026, down from $2.5 billion repurchased in fiscal 2025. InvestingPro data cited by analysts shows management has been aggressive in buybacks, a practice that has contributed to a high shareholder yield.
On the product side, eBay discussed several platform initiatives tied to artificial intelligence, positioning the business for what it described as agentic commerce enhancements. These product and platform updates figure into the company’s strategy to sustain revenue growth above historical trends.
Cantor Fitzgerald adjusted its forecasts modestly, raising fiscal 2027 pro forma earnings per share estimates by 2%. The broker noted that while top-line growth remains elevated relative to the company’s historical pace, the current valuation largely reflects eBay’s medium-term growth trajectory and margin profile. At current prices, the shares trade at a price-to-earnings ratio of 18.65 and a price-to-book multiple of 7.87. eBay has also extended its dividend record, having increased payouts for seven consecutive years.
Separate company disclosures reiterated robust near-term performance metrics. In another report of fourth-quarter 2025 results, eBay said net revenue and earnings per share surpassed consensus estimates by 3% and 14%, respectively. The company’s guidance for the first quarter of fiscal 2026 also exceeded consensus, with both GMV and net revenue guidance coming in 9% above expectations.
Those results prompted a flurry of analyst adjustments. BMO Capital raised its price target to $120 and kept an Outperform rating. Needham increased its target to $122 while maintaining a Buy rating. Piper Sandler lifted its target to $105, citing strong GMV growth. Truist Securities held to a Hold rating and set a $94 target, pointing to continued execution on growth initiatives. Goldman Sachs moved to Neutral from Sell and raised its price target to $88, citing solid operating momentum.
The combination of modest earnings beats, above-consensus guidance for the near term, continued buyback activity and a sizable acquisition has left analysts divided on upside potential. Cantor Fitzgerald’s maintained Neutral stance and $90 price target reflect the view that current market pricing already incorporates much of the company’s medium-term growth and margin expectations.
Summary - Cantor Fitzgerald kept a Neutral rating and $90 price target on eBay after results that modestly outperformed expectations and guidance that indicated continued, but measured, growth. The company is proceeding with a roughly $1.2 billion acquisition of Depop and plans a $2 billion share repurchase in fiscal 2026.
Key points:
- Q4 revenue and non-GAAP EPS beat Street estimates by 3% and 4%, respectively; a separate filing noted Q4 net revenue and EPS beat consensus by 3% and 14%.
- Management guided fiscal 2026 GMV growth of 6% (FX neutral) and non-GAAP operating income growth of 13%, broadly in line with fiscal 2025.
- eBay will acquire Depop for about $1.2 billion and plans $2 billion in share buybacks for fiscal 2026, down from $2.5 billion the prior year.
Risks and uncertainties:
- The planned Depop acquisition, at approximately $1.2 billion, represents a material capital outlay that could affect balance sheet flexibility despite a reported strong cash position - relevant to corporate finance and capital markets.
- A reduced share repurchase program in fiscal 2026 versus fiscal 2025 could alter shareholder yield dynamics depending on future buyback cadence - relevant to equity markets and investor returns.
- Current valuation metrics, including a P/E of 18.65 and Price/Book of 7.87, suggest the market is pricing in medium-term growth and margin expectations; any deviation from those expectations could pressure the stock - relevant to equity valuation and portfolio allocation.