TLDR
- eBay jumps as workforce shifts and new growth priorities fuel investor confidence.
- Depop deal boosts eBay’s fashion footprint and strengthens its youth strategy.
- Earnings beat and new buybacks drive strong market reaction for eBay shares.
- Strategic hiring and new AI tools position eBay for steadier long-term growth
- eBay rallies as execution improves across resale fashion, vehicles, and AI tools.
eBay Inc. (EBAY) shares advanced on Thursday after the company outlined targeted workforce changes and reaffirmed growth priorities. The stock climbed to $88.02, gaining 3.15% after a sharp mid-morning rally. It held near session highs into the afternoon as trading volumes remained firm.
eBay Reallocates Workforce Toward Growth Areas
eBay confirmed targeted layoffs while continuing hiring in high-priority roles. Management directed the changes toward resource reallocation rather than broad cost reductions. As a result, the stock rose about 3.4% in midday trading.
The company employed 12,300 people worldwide at the end of last year. About 7,200 of those employees worked in the United States. eBay also implemented workforce reductions during 2023 and 2024.
Management indicated that revenue per employee has moderated in recent periods. Therefore, leadership shifted staffing to support strategic growth programs. The move aligns operating costs with long-term expansion plans.
Etsy Depop Deal Expands Fashion Reach and Digital Strategy
Etsy agreed to sell Depop to eBay for approximately $1.2 billion. The transaction strengthens eBay’s position among younger and fashion-focused shoppers. Depop has built strong engagement within the secondhand clothing market.
eBay deepens its presence in resale fashion categories. The company also integrates Depop’s community-driven model into its broader marketplace strategy. Consequently, management expects incremental user growth and higher engagement.
eBay continues expanding digital vehicle transactions and eBay Live initiatives. The company also advances its artificial intelligence roadmap across buyer and seller tools. These efforts aim to improve personalization, pricing accuracy, and listing efficiency.
Strong Earnings Beat and Upgraded Targets Support Momentum
eBay recently reported fourth-quarter revenue and non-GAAP earnings per share above expectations. Revenue exceeded consensus estimates by 3%, while earnings topped forecasts by 4%. Trading cards, collectibles, bullion, and coins delivered standout category performance.
The company also issued a first-quarter sales outlook above Wall Street projections. In addition, management authorized a new $2 billion share repurchase program. It also completed a $1.2 billion acquisition to reinforce strategic expansion.
Analysts project revenue growth of 3% in the fourth quarter of 2026. That figure marks a slowdown from 15% growth recorded in the prior year period. 21 analysts recently revised earnings estimates upward for the upcoming quarter.
eBay previously noted it will cycle through unsustainable gross merchandise volume growth in 2026. It also expects a modest impact from regulatory changes affecting De Minimis thresholds. Despite these headwinds, the company continues scaling established priorities and accelerating new growth drivers.
eBay combines disciplined workforce adjustments with strategic investments and capital returns. The stock’s advance reflects confidence in execution and forward guidance. Management continues positioning the marketplace for stable and measured growth.
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