Focus Categories And AI Will Shape Marketplace Dynamics In The Coming Years

eBay's analyst price target has been raised from $89 to approximately $91.55 per share. This reflects modest optimism among analysts due to ongoing improvements in product initiatives, growth in focus categories, and strengthened marketplace fundamentals.

Analyst Commentary

Recent analyst research notes reflect a range of opinions on eBay's valuation, growth potential, and operational execution. Insights from both bullish and bearish analysts highlight the opportunities and risks facing the company at its current stage.

• Bullish analysts point to ongoing product initiatives and focus category strategies as drivers of a significantly improved consumer experience. These factors are expected to fuel mid-single-digit merchandise volume growth in the coming years.
• Growth within Collectibles and trading cards has strengthened eBay’s position in key verticals, with several consecutive quarters of strong contribution from these segments.
• Artificial intelligence enhancements are seen as catalysts for more efficient product discovery and listing processes. This is helping to maintain eBay’s competitive edge and marketplace fundamentals.
• Recent gross merchandise volume (GMV) trends have accelerated. Management execution has translated into consistent quarter-over-quarter growth and the potential for top-line beats.

• Bearish analysts remain cautious about the sustainability of Collectibles growth and note that its trajectory is unpredictable and not fully in eBay’s control. This introduces volatility into future estimates.
• Concerns persist regarding the company's ability to keep pace with peers in the broader e-commerce sector, particularly as eBay’s growth continues to lag behind other large platforms.
• Some analysts cite risks in valuation expansion if gross merchandise volume growth slows or if AI integration disrupts the current operating model more than anticipated.
• A number of neutral or downgraded outlooks reflect the view that while recent results have been strong, tougher year-over-year comparisons and reliance on macro conditions may limit further upside.

What's in the News

• eBay has launched eBay International Shipping (eIS) in Canada, its first expansion of the program beyond the US. This enables Canadian sellers to reach buyers in the US, UK, Australia, and the European Union through a new domestic hub in Mississauga, Ontario (Key Developments).
• The company completed a share repurchase tranche from April to June 2025, buying back over 8.8 million shares for $625 million. This brings total buybacks to over 131 million shares and $6.95 billion since early 2022 (Key Developments).
• eBay issued earnings guidance for Q3 2025, projecting revenue between $2.69 billion and $2.74 billion and diluted GAAP EPS in the range of $0.97 to $1.02 (Key Developments).
• eBay introduced Secure Purchase, an all-in-one solution for vehicle transactions that manages payment, financing, registration, and ownership transfer. This simplifies the process for buyers and sellers across state lines (Key Developments).

Valuation Changes

• Consensus Analyst Price Target has risen slightly, increasing from $89 to approximately $91.55 per share.
• Discount Rate has decreased marginally from 8.66% to 8.60%, indicating a modest reduction in perceived risk.
• Revenue Growth projection has dipped fractionally from 5.37% to 5.28%, reflecting a slightly more cautious outlook on future sales expansion.
• Net Profit Margin expectation has edged down from 18.57% to 18.52%.
• Future P/E (Price-to-Earnings Ratio) has increased from 19.87x to 20.52x, suggesting a modestly higher valuation relative to forecasted earnings.