14-Jan-2025 3:36 AM CST

eBay Stock Surges Following Meta Partnership

eBay's stock price has experienced a significant increase following its partnership with Meta Platforms, allowing eBay listings to be featured on Facebook Marketplace. The collaboration, which began with a pilot in the United States, has led to a surge in eBay's stock price, with shares climbing 4.7% and reaching a 52-week high of $71.52. This strategic move aims to extend eBay's reach and provide a seamless experience for buyers and sellers, potentially increasing eBay's Gross Merchandise Volume.

Analysts' Perspectives on eBay-Meta Collaboration

Analysts have expressed optimistic views about the partnership between eBay and Meta Platforms. Citi analyst Ygal Arounian maintains a Buy rating on eBay with a $75 price target, citing the potential for a significant expansion of eBay's audience. Similarly, Morgan Stanley's analyst Nathan Feather also maintains a Buy rating with a price target of $72.00, highlighting the potential for eBay to benefit from Meta's vast user base. However, UBS analyst Kunal Madhukar keeps a Neutral rating and a $66 price target, emphasizing the need for eBay to convert Facebook Marketplace users into buyers.

Wells Fargo's Projections and Industry Impact

Wells Fargo estimates that the partnership could add about $1.6 billion to eBay's 2025 GMV, indicating a positive impact on the company's revenue. The analyst, Ken Gawrelski, maintains a Hold rating on eBay with a price target of $62.00, suggesting a balanced view of the partnership's potential. The collaboration is also seen as a response to EU antitrust pressure on Meta, which could lead to increased competition in the online marketplace space.

Earnings Date and Future Outlook

eBay is scheduled to report its earnings on Wednesday, January 29, 2025. The partnership with Meta Platforms is expected to play a significant role in the company's future performance, with analysts predicting potential growth in GMV and increased user engagement. Despite the positive outlook, eBay will need to navigate the challenges of converting Facebook Marketplace users into buyers and maintaining its competitive edge in the rapidly evolving e-commerce landscape.