Investing.com — BMO Capital Markets analyst Brian J. Pitz has named eBay as a new top pick in the e-commerce sector, reiterating an Outperform rating and $150 price target following two days of meetings with company management.
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1. eBay Inc (NASDAQ:EBAY) – Pitz said he left the management meetings more positive about the durability and breadth of marketplace growth at eBay. While Focus Categories remain central to the strategy, additional growth drivers include consumer-to-consumer sales, eBay Live, vehicles, Depop, and platform-wide improvements.
The analyst noted that management’s detailed monitoring of collectibles demand, disciplined reinvestment approach, and emphasis on operating income dollar growth support the view that eBay is a structurally improving marketplace rather than simply a beneficiary of temporary category strength. Growth durability extends beyond trading cards, with management highlighting broad-based demand across strategic priorities.
Category diversification and improving core trends are reducing dependence on any single collectibles cycle, according to the note. eBay Live, now a multi-billion-dollar annualized gross merchandise volume business, reinforces the core marketplace rather than operating as a standalone channel. Consumer-to-consumer selling is outgrowing the broader U.S. marketplace, while Depop extends fashion into younger, lower average selling price customer groups with limited buyer overlap.
AI-enabled supply growth and trust infrastructure further support the investment thesis, Pitz wrote. The Magical Listing feature reduces supply-side friction, while authentication, fitment capabilities, and global logistics support conversion and higher-value transactions.
Management prioritizes gross merchandise volume, operating income dollars, and earnings per share, with advertising revenue offsetting mix pressure from vehicles, Live incentives, and Depop shipping subsidies. The analyst noted that management described stronger 2026 operating income growth expectations despite Depop investment, with efficiencies creating capacity for strategic spending.
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