Barclays sees a favorable earnings setup for these two e-commerce names

Investing.com - Barclays analysts see a favorable setup for Etsy (NASDAQ:ETSY) and eBay (NASDAQ:EBAY) heading into their third-quarter earnings reports, according to a recent research note.

The firm maintained an "overweight" rating on eBay with a $92 price target, while keeping their outlook for Etsy at "equal weight" with a $60 target.

Barclays expressed surprise at the strength in U.S. e-commerce trends so far in 2025, noting that discretionary spending—consumer purchases of non-essential items like clothing, electronics, and collectibles—has improved and generally outpaced overall personal consumption expenditures. This trend particularly benefits platforms like Etsy and Revolve, the firm noted.

For eBay, Barclays expects GMV (Gross Merchandise Value) to outpace consensus estimates in the U.S. market, with strong performance in focus categories including collectibles. The firm highlighted that Amazon’s (NASDAQ:AMZN) absence from Google Product Listing Ads might be helping eBay, while the Klarna integration is supporting volumes in higher average selling price categories.

Regarding Etsy, Barclays slightly trimmed its third-quarter gross merchandise sales estimate to reflect headwinds from the August 29 de minimis rescission affecting Europe-to-U.S. transactions—a policy change that removed duty exemptions for certain low-value imports. Despite this adjustment, the firm still projects Etsy’s Q3 GMS at $2,684 million, slightly ahead of consensus and toward the upper end of the company’s guidance range.

The research note also addressed OpenAI’s "Instant Checkout" feature, with Barclays reporting that most investors view this development as more of an opportunity than a threat to e-commerce companies that are integrated with the service, including Etsy as one of the early partners.

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