What Happened?
Shares of online marketplace eBay (NASDAQ: EBAY) fell 15.1% in the morning session after the company reported third-quarter financial results that were overshadowed by a weaker-than-expected profit forecast for the crucial holiday quarter. While the online marketplace beat Wall Street's revenue expectations in its third quarter with sales up 9.5% year on year to $2.82 billion, its guidance for the next quarter fell short. The company expected adjusted earnings per share between $1.31 and $1.36, below analysts' average estimate of $1.39. The downbeat forecast raised concerns amid ongoing macroeconomic uncertainty. In a statement, CEO Jamie Iannone noted that eBay continued to see macroeconomic challenges across international markets. Adding to the concerns, the total number of active buyers was flat compared to the previous year, highlighting ongoing challenges in attracting new users.
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What Is The Market Telling Us
eBay’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. Moves this big are rare for eBay and indicate this news significantly impacted the market’s perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 3.1% on the news that analysts at both TD Cowen and Morgan Stanley raised their price targets on the stock, signaling positive expectations. TD Cowen increased its price target to $84 from $80, although it kept a Hold rating on the stock. The firm cited an expected pickup in Gross Merchandise Volume (GMV), a key sales metric, for the third quarter of 2025. This positive forecast was attributed to the continued strength in U.S. consumer spending and helpful foreign exchange conditions. Adding to the positive sentiment, Morgan Stanley also lifted its price target on eBay to $102 from $89, while it maintained an Overweight rating on the shares.
eBay is up 36.7% since the beginning of the year, but at $85.13 per share, it is still trading 15.5% below its 52-week high of $100.77 from August 2025. Investors who bought $1,000 worth of eBay’s shares 5 years ago would now be looking at an investment worth $1,787.
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