Why is eBay stock rallying today?

eBay stock experienced a significant rally of 3.9% in afternoon trading, reaching a price of $122.59, which is close to its year-high of $124.59. The e-commerce giant delivered impressive earnings for the third quarter, surpassing analyst expectations in every key financial metric. Non-GAAP earnings per share (EPS) came in at $1.51, exceeding the consensus estimate of $1.41, while revenue of $3.21 billion beat the forecasted $3.11 billion and marked a 14% year-over-year growth.

The company's gross merchandise volume (GMV) soared to $23.2 billion, marking a 15% increase, with notable growth in categories like collectibles, eBay Motors, and fashion.

Management raised its full-year 2026 non-GAAP EPS guidance to a range of $6.25–$6.30, surpassing the prior Street consensus of $6.14. The company also raised its revenue outlook to $12.62–$12.67 billion, which is above the estimated $12.53 billion. These strong results led to a series of positive analyst actions, including an upgrade from Underweight to Equal Weight by Wells Fargo, citing reduced downside earnings risks and the company's ability to offset competitive pressures.

Barclays raised its price target to $136, calling the shares to be in a sweet spot, while Needham lifted its target to $140. UBS also raised its target to $137.

In addition to the earnings beat, eBay announced a workforce reduction of about 9%, aimed at streamlining operations and redirecting capital towards faster-growing initiatives like Depop and live commerce. Despite a generally tough market, with the Nasdaq composite falling 1.7% and the S&P 500 slipping 0.6%, eBay's decisive outperformance was driven by strong company-specific catalysts.

The company highlighted that eBay Live achieved a multibillion-dollar annualized GMV run rate, with active buyers growing to 147 million on a pro forma basis. These factors, combined with $827 million returned to investors in the quarter alone, provided multiple reasons for investors to bid the stock higher, effectively counteracting the day's negative macroeconomic sentiment.