eBay Depop Acquisition: Double-Digit Revenue Boom and Rally Opportunity

Will the eBay Depop acquisition be the game changer that sustainably elevates recommerce growth and stock rally to a new level?

How strong was eBay’s quarter?

eBay Inc. significantly exceeded Wall Street expectations in the fourth quarter of 2025. Revenue rose to approximately $2.97 to $3.0 billion, representing an increase of about 13 to 15% compared to the previous year. Gross merchandise volume (GMV) climbed to $21.2 billion, showing organic FX-neutral growth of over 8%. Particularly, focus categories such as luxury, collectibles, auto parts, electronics, fashion, and refurbished products drove the growth, which management reported grew by more than 16%.

In terms of earnings per share, eBay Inc. reported an adjusted EPS of $1.41, up from $1.25 in the same quarter last year. This figure was significantly above consensus estimates of around $1.34 to $1.35. The operating margin remained robust at just over 26%, despite the expansion of shipping programs and authentication services impacting the gross margin. Overall, eBay generated revenues of about $11.1 billion for the entire year of 2025 and an adjusted profit of $5.52 per share – also exceeding analyst expectations.

The market reacted positively to the numbers: eBay’s stock (EBAY) rose to $82.18 (+2.79%) in regular trading and increased to $86.92 in after-hours trading, representing an additional gain of over 5.7%. Although the stock is still away from its 52-week high of $101.15, the gap to the yearly low of $58.73 has significantly widened.

What is the strategic significance of the eBay Depop acquisition?

The centerpiece of the current story is the eBay Depop acquisition. eBay is acquiring Depop from Etsy for approximately $1.2 billion in cash. Depop is a mobile second-hand fashion platform with around seven million active buyers and more than three million sellers, achieving a GMV of about $1 billion in 2025. Approximately 90% of users are under 34 years old – precisely the target demographic that eBay has only reached to a limited extent.

Fashion is already one of the fastest-growing categories within the eBay ecosystem, with over $10 billion in annual GMV. Through the eBay Depop acquisition, the Californians are strengthening their position in the rapidly growing recommerce segment, where pre-loved and refurbished goods now account for over 40% of total GMV, according to management. Depop will retain its own brand, platform, and culture while leveraging eBay’s reach and infrastructure.

Financially, eBay expects that Depop will contribute an additional 1 to 2 percentage points to GMV growth after the transaction closes in 2026. However, the integration will initially cost a low single-digit percentage in operating income and EPS growth. Management anticipates that the deal will begin to create value starting in 2028. The eBay Depop acquisition is thus clearly positioned as a long-term growth lever rather than a short-term earnings driver.

eBay Inc. (EBAY) Stock Chart — 1-Year Chart · Source: stocknewsroom.com

How is the market reacting to eBay and Depop?

The combination of a strong quarter and the eBay Depop acquisition has rekindled growth fantasies among many investors regarding the nearly 30-year-old online marketplace. The stock’s rise of over 7% in after-hours trading indicates that the market is rewarding the recommerce and fashion narrative. eBay benefits from a clear focus on higher-value categories such as luxury watches, sneakers, designer handbags, and refurbished electronics, which improve margins and customer loyalty.

The outlook underscores this trend: For the first quarter of 2026, eBay Inc. expects a GMV of $21.5 to $21.9 billion (10 to 12% FX-neutral growth) and revenues of $3.0 to $3.05 billion (13 to 15% FX-neutral growth). The adjusted EPS is projected to be between $1.53 and $1.59, reflecting an increase of 12 to 16%. For the full year, eBay plans – excluding Depop – an increase in operating income of 8 to 10% and intends to allocate up to $2 billion for stock buybacks while raising the quarterly dividend to $0.31 per share.

Analysts from major firms such as Citigroup, Goldman Sachs, Morgan Stanley, and RBC Capital Markets are closely monitoring the recent figures and strategic direction and are likely to adjust their valuation models, particularly considering the increased weight of recommerce and the eBay Depop acquisition. Specific new price targets are expected in the coming days and could provide additional momentum for the stock.

Bottom Line

The eBay Depop acquisition and the significantly better-than-expected Q4 numbers demonstrate that eBay is strategically positioning itself successfully in the high-margin recommerce and fashion segment. For investors, the company is once again emerging as a growth-oriented e-commerce player with solid profitability and shareholder returns. The crucial factor now will be whether eBay can swiftly manage the integration of Depop and sustainably unlock the additional growth potential of the young user base.