GameStop Corporation (GME) CEO has hit back at e-commerce company eBay (EBAY) after GameStop’s takeover bid was rebuffed by eBay. Meme frenzy’s popular name, GameStop, made a bold bid to acquire eBay for $125 per share in a cash-and-stock deal. This was a surprising move, as eBay’s market cap is far larger than GameStop's.
In any case, eBay rejected the bid, citing the $56 billion takeover proposal as “neither credible nor attractive.” After that, Cohen hit back at eBay’s management, stating that the e-commerce firm needs to be on Ozempic because it has become obese to an “unhealthy degree,” implying there are significant cost-cutting opportunities at eBay.
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Investors have seemingly shrugged off this rejection of the takeover bid, as eBay’s stock gained 2.4% intraday on May 13 and followed it with another intraday gain on May 14. The stock reached a new all-time high of $113.73 on May 13 and hit a high of $116.83 today.
eBay is now focused on its fashion and collectible offerings. The company agreed to acquire Depop, a leading C2C fashion marketplace. In addition, Goldin, an eBay company, reached an all-time quarterly GMV record in Q1, driven by a record-breaking $16.50 million sale of a PSA 10 Pikachu Illustrator card.
About eBay Stock
eBay is a global online marketplace that connects buyers and sellers across a wide range of products, operating mainly through auctions and fixed‑price listings. The company runs an asset-light platform that supports sellers with listing, payment, and logistics tools while focusing on trust, search, and discovery.
In recent years, eBay has leaned further into recommerce and the circular economy, expanding services for preowned goods and launching live events to attract fashion and collectibles buyers. It is headquartered in San Jose, California, and has a market capitalization of $50.28 billion.
eBay’s stock has risen over the past year as investors react positively to its growth strategy. The move reflects improving sales and profitability, stronger performance in higher‑margin categories such as collectibles and fashion, and better use of AI to enhance search and recommendations. Over the past 52 weeks, the stock has gained 64.49%, while it has been up 33.33% year-to-date (YTD).
www.barchart.com On a forward-adjusted basis, eBay’s price-to-earnings (non-GAAP) ratio of 18.48 times is higher than the industry average of 15.28 times.
eBay Beats Q1 Expectations on Stronger Sales and Profitability
eBay reported solid results for the first quarter of fiscal 2026. The company reported $3.09 billion in revenue for the quarter, up 19% year-over-year (YOY). The top-line figure was also higher than the $3.03 billion that Wall Street analysts had expected. Its total gross merchandise volume (GMV) increased 18% from the prior-year period to $22.20 billion.
eBay’s growth was largely fueled by its total advertising offerings, which generated $581 million in revenue and accounted for 2.6% of GMV. First-party advertising products on the eBay platform generated a revenue of $555 million, up 33% YOY.
And, the profitability situation has held up for eBay in this quarter. Its non-GAAP EPS increased 21% YOY to $1.66, which was higher than the $1.58 that Wall Street analysts had expected.
However, some pressure on margins cannot be ignored. The company’s GAAP operating margin decreased to 19.8% from 23.6% in the prior-year period, while non-GAAP operating margin decreased to 29.4% from 29.6%.
Wall Street analysts are robustly optimistic about eBay’s future earnings. They expect the company’s EPS to climb by 11.2% YOY to $1.19 for the current quarter. For fiscal 2026, EPS is projected to surge 15.6% annually to $4.83, followed by an 11.2% growth to $5.37 in fiscal 2027.
What Do Analysts Think About eBay’s Stock?
There are some differing opinions on eBay’s stock post its first-quarter earnings release. Analysts at Needham reaffirmed a bullish “Buy” rating on the stock and a $122 price target, which underscores that analysts are still bullish about the e-commerce company’s prospects. Analyst Deepak Mathivanan from Cantor Fitzgerald maintained a “Neutral” rating, while raising the price target from $100 to $110.
Recently, eBay received a price target raise from $114 to $127 from Citi analyst Ronald Josey, while maintaining a “Buy” rating on the stock. The analyst believes that eBay’s better-than-expected Q1 results should continue and observes strength across its focus categories.
Wall Street analysts have a moderately favorable view of eBay’s stock, awarding it with a “Moderate Buy” rating overall. Of the 31 analysts rating the stock, nine analysts have rated it a “Strong Buy,” two analysts rated it “Moderate Buy,” while 19 analysts gave a “Hold” rating, and one suggested “Moderate Sell.” The consensus price target of $109.25 represents a 5.9% downside from current levels, while the Street-high price target of $130 indicates an 11.9% upside.
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www.barchart.com On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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