Overview
Goldman Sachs adjusted its stance on eBay, moving the stock to a Neutral rating following what the firm described as a "strong set of results" for the fourth quarter. The upgrade reflects outperformance across several core metrics and management commentary that earlier investments are now delivering measurable operating momentum.
Financial and operational performance
Analyst Eric Sheridan noted that eBay beat expectations for gross merchandise volume (GMV), revenue and non-GAAP earnings in the quarter. The outperformance was attributed in part to gains in the company’s focus categories and what Goldman characterized as the "strength of the U.S. market." Management indicated that prior investments intended to reposition the business for sustained growth are translating into "solid operating momentum into 2026."
Goldman Sachs pointed to the company’s efforts to scale platform capabilities and roll out product initiatives, along with a strategic tilt toward faster-growing verticals such as collectibles and fashion. These factors helped underpin the firm’s projection of "sustained positive revenue growth momentum in the coming 12-18 months." The outlook is backed by expectations of stable margins and continued shareholder returns, including a newly authorized $2 billion share repurchase.
Reflecting the revised view, Goldman increased its 12-month price target for eBay to $88 from $77.
Quarter strengths and weaknesses
On the positive side, U.S. GMV topped expectations, with emerging areas including live commerce and vehicles providing meaningful contribution to growth. eBay’s designated focus categories expanded 16% year over year, and disciplined cost control supported an upward revision to earnings guidance.
However, Goldman flagged several areas of caution. International GMV underperformed, a result the firm linked to macroeconomic pressures in Europe. Growth in trading cards decelerated, and management expects that slower trend to persist through 2026. Separately, eBay’s planned $1.2 billion acquisition of Depop is seen as strategically aligned with the company’s pivot toward faster-growing categories, but Goldman projects the deal will act as a "low single-digit headwind" to operating income growth because of integration costs.
Implications for investors
Goldman Sachs’ move to Neutral and the higher price target reflect a recalibration that balances stronger U.S. performance and category momentum against international and category-specific slowdowns as well as near-term integration costs from the Depop acquisition. The firm’s outlook incorporates continued revenue growth, stable margins and a $2 billion buyback as supporting elements for shareholder returns over the next 12-18 months.
Key takeaways
- eBay delivered Q4 results that beat expectations on GMV, revenue and non-GAAP EPS.
- U.S. market strength and a 16% rise in focus categories underpinned performance; international GMV and trading-card growth were weak.
- Goldman raised its 12-month price target to $88 and expects sustained revenue momentum, supported by a $2 billion share repurchase authorization.