• In February 2026, eBay Inc. reported fourth-quarter 2025 revenue of US$2,965 million and full-year revenue of US$11.10 billion, announced a quarterly dividend of US$0.31 per share, completed a multi-year US$8.20 billion buyback program, filed a universal shelf registration, and began cutting about 800 jobs, roughly 6% of its workforce, following its US$1.20 billion Depop acquisition.
• Together, these moves suggest eBay is rebalancing its capital structure and cost base while doubling down on recommerce and younger shoppers through Depop.
• Next, we’ll examine how eBay’s workforce cuts and Depop integration might influence its AI- and recommerce-focused investment narrative.

The latest GPUs need a type of rare earth metal called Terbium and there are only 31 companies in the world exploring or producing it. Find the list for free.

eBay Investment Narrative Recap

To own eBay, you need to believe its recommerce focus, AI tools, and high-engagement niches can offset slower growth in its broader marketplace. The latest quarter showed higher revenue but lower net income, while new layoffs and the Depop deal sharpen attention on execution. In the near term, the key catalyst is whether AI and vertical initiatives translate into higher engagement, with the biggest risk still that core categories outside collectibles and recommerce remain sluggish. The February news does not fundamentally change that risk, but it does bring cost control and integration into sharper focus.

Among the recent announcements, the completion of the US$8.20 billion buyback program stands out alongside the new workforce cuts. Together with the ongoing dividend, this puts the spotlight on how eBay balances returning cash to shareholders with funding Depop integration and AI investments that underpin the recommerce and younger-buyer story. For investors watching catalysts, it raises practical questions about how much future earnings growth will come from operational improvement versus financial engineering.

Yet beneath the focus on AI and recommerce, investors should be aware that eBay’s dependence on a few hype driven categories like trading cards and collectibles could...

eBay’s narrative projects $12.3 billion revenue and $2.3 billion earnings by 2028.

Uncover how eBay's forecasts yield a $94.73 fair value, a 4% upside to its current price.

Exploring Other Perspectives

Some of the lowest ranked analysts were already projecting only about US$11.8 billion of revenue and US$2.1 billion of earnings by 2028, so if you worry that competitors and younger shoppers keep drifting to integrated ecosystems, this new Depop deal and cost cutting may or may not shift that more pessimistic view over time.

Explore 8 other fair value estimates on eBay - why the stock might be worth 30% less than the current price!

Decide For Yourself

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your eBay research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.
• Our free eBay research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate eBay's overall financial health at a glance.

Curious About Other Options?

Opportunities like this don't last. These are today's most promising picks. Check them out now:

• Invest in the nuclear renaissance through our list of 84 elite nuclear energy infrastructure plays powering the global AI revolution.
• The future of work is here. Discover the 30 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation.
• AI is about to change healthcare. These 28 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.