Goldman Sachs updated its view on eBay Inc. (NASDAQ:EBAY), moving the stock from Sell to Neutral and lifting its price target to $88 from $77. The firm said the change follows eBay's fourth-quarter 2025 results, which came in ahead of both Goldman Sachs' own forecasts and consensus Street estimates.
Goldman analyst Eric Sheridan commented that the company's prior investments to reposition its operations have translated into tangible operating momentum in 2026. The report underscores several measures of financial strength: a gross profit margin of 71.6% and a market capitalization reported at $37.15 billion.
Management described an ongoing emphasis on scaling investments to expand platform capabilities and advance product initiatives, while also increasing exposure to faster-growing categories within the business. At the same time, executives acknowledged headwinds in international markets arising from macroeconomic conditions, a dynamic that management said is weighing on the company's overseas results.
In a move reinforcing its commitment to returning capital to shareholders, eBay authorized a new $2 billion share repurchase program. The authorization supplements a track record of active buybacks and dividend distributions: InvestingPro data cited in the report indicates eBay has been buying back shares aggressively, carries a 1.41% dividend yield, and has raised its dividend for seven consecutive years.
Goldman Sachs' outlook for the company anticipates sustained positive revenue growth over the next 12 to 18 months, alongside stable operating margins and continued shareholder returns. The firm's view is consistent with the results disclosed in the quarter, which included revenue of $10.71 billion, up 4.36% year-over-year, and a price-to-earnings ratio of 17.97.
Other sell-side commentary and developments referenced alongside Goldman's revision show a mixture of expectations. TD Cowen projected double-digit revenue growth for the fourth quarter of 2025 and expects a 7.8% year-over-year increase in gross merchandise volume, which the firm said would exceed the midpoint of guidance. Citizens reiterated a Market Outperform rating with a $115 target, attributing its stance to robust demand in categories such as collectibles and luxury resale.
Conversely, BNP Paribas Exane initiated coverage with a Neutral rating and a $90 price target, recognizing eBay's sizable position in global e-commerce but expressing caution about the company's growth trajectory. Adding to the company's near-term uncertainties, French authorities have opened an investigation into suspected sales of illicit goods on eBay's platform; the prosecutor's office confirmed the probe following reporting in Le Parisien.
These developments paint a picture of a company that is demonstrating improved operating performance and returning capital to shareholders, while navigating uneven international conditions and regulatory scrutiny abroad. Investors and market participants will likely weigh the momentum in core financials and shareholder returns against the external risks highlighted by analysts and authorities.
Key points:
- Goldman Sachs upgraded eBay to Neutral from Sell and raised its price target to $88, citing stronger-than-expected fourth-quarter results and improved operating momentum.
- eBay reported a 71.6% gross profit margin, $10.71 billion in revenue (up 4.36%), and a market capitalization of $37.15 billion; the company also authorized a new $2 billion share repurchase program.
- Analyst views vary: TD Cowen and Citizens expressed strong growth expectations and favorable ratings, while BNP Paribas Exane began coverage with a Neutral stance; a French investigation adds regulatory uncertainty.
Risks and uncertainties:
- International macroeconomic conditions are cited by management as a headwind, which could affect eBay's overseas revenue performance and the broader e-commerce sector exposed to cross-border demand shifts.
- A French probe into alleged illicit sales on the platform introduces regulatory risk and potential reputational impacts that could weigh on operations and investor sentiment, particularly in jurisdictions under investigation.
- Mixed analyst views on growth trajectory, as highlighted by BNP Paribas Exane's cautious initiation, point to uncertainty over the company's medium-term growth path and how quickly investments convert into incremental revenue.