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Investing.com - Benchmark raised its price target on eBay (NASDAQ:EBAY) to $110.00 from $100.00 on Thursday, while maintaining a Buy rating following the company’s strong third-quarter performance.
The e-commerce platform reported a significant acceleration in Gross Merchandise Volume (GMV) growth to 10% in the third quarter, exceeding analyst expectations. This growth was particularly strong in the U.S. market, with the company also delivering a slight improvement in non-GAAP operating margin.
eBay’s fourth-quarter GMV guidance also came in substantially ahead of market consensus, despite some potentially temporary tailwinds in certain product categories. However, the company’s projected take rate was lower than expected, and its non-GAAP operating margin guidance fell a full percentage point below analyst estimates at the midpoint.
The company cautioned about potential GMV growth headwinds in 2026, citing tougher comparisons and higher breakage, which may have dampened investor enthusiasm despite the strong current performance. These forward-looking concerns appear to have validated skeptics’ views about the sustainability of eBay’s recent growth trajectory.
eBay shares had previously reached a 52-week high of $101.15 following second-quarter results that showed GMV growth of 6%, before retreating as investors questioned the stock’s valuation and growth sustainability.
In other recent news, eBay reported strong third-quarter results, with revenue reaching $2.8 billion and an 8% year-over-year growth in Gross Merchandise Value (GMV), both surpassing market expectations. The company’s focus categories, especially collectibles, showed significant momentum with a 15% increase compared to the previous year. Following these results, several investment firms adjusted their price targets for eBay. Cantor Fitzgerald raised its target to $90, citing the impressive GMV growth. BMO Capital increased its target to $107, highlighting the solid performance driven by focus category growth. Piper Sandler set its target at $102 due to the accelerating GMV growth, particularly in the U.S. However, Stifel lowered its target slightly to $88, expressing some growth concerns despite the strong quarterly performance. Meanwhile, Wells Fargo increased its target to $96, pointing to strategic initiatives like eBay Live and consumer-to-consumer selling as potential future growth drivers. These developments reflect a mixed but generally positive outlook from analysts on eBay’s recent performance and strategic direction.
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