Goldman Sachs lifts eBay to neutral after strong Q4

Investing.com -- Goldman Sachs upgraded eBay to Neutral after the company delivered what the firm called a “strong set of results” in its fourth-quarter report.

Analyst Eric Sheridan noted that GMV, revenue and non-GAAP earnings all came in ahead of expectations, helped by momentum in focus categories and “the strength of the U.S. market.”

Sheridan said management emphasised that earlier investments aimed at repositioning the company for durable growth are now translating into “solid operating momentum into 2026.”

Goldman Sachs highlighted continued efforts to scale platform capabilities and product initiatives, as well as increasing exposure to faster-growing verticals such as collectibles and fashion.

The firm now expects “sustained positive revenue growth momentum in the coming 12–18 months,” supported by stable margins and consistent shareholder returns, including a new $2 billion share repurchase authorisation.

Sheridan added that these trends justified raising the 12-month price target to $88, from $77.

Goldman Sachs highlighted both positives and negatives in the quarter. On the upside, U.S. GMV exceeded expectations, with emerging growth vectors such as live commerce and vehicles contributing meaningfully.

Focus categories rose 16% year over year, while cost discipline helped lift earnings guidance. On the downside, international GMV was weaker due to European macro pressures, and trading-card growth slowed, a trend management expects to persist through 2026.

Sheridan also pointed to eBay’s $1.2 billion planned acquisition of Depop, describing it as aligned with the company’s strategy to expand in faster-growing categories, though it is expected to be a “low single-digit headwind” to operating income growth due to integration costs.

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