EBAY Rallies on $1.2B Depop Acquisition & Earnings

Company Performance - eBay reported a strong fourth quarter, earning $1.41 per share, which is a 13% year-over-year increase and beat estimates by $0.10 [1] - Sales increased by 15% year-over-year to $2.97 billion, surpassing estimates by at least $100 million, driven by holiday shopping and AI initiatives [1] - eBay announced an acquisition of a secondhand clothing marketplace for $1.2 billion from Etsy, aiming to attract a younger customer base [1] Shareholder Returns - eBay increased its first quarter cash dividend from $0.29 to $0.31 per share, payable on March 20 [1] - Analysts have responded positively to eBay's performance and acquisition, with price target adjustments reflecting optimism [1][2] Analyst Reactions - Analysts have given positive feedback on eBay's acquisition, with NEM raising its price target for eBay from $115 to $122, maintaining a buy rating [1] - Barclays has lowered its price target but kept an overweight rating, while Bernstein and Morgan Stanley provided favorable commentary on eBay's performance [1] - Stiffel's analyst expressed caution regarding the sustainability of growth, projecting 6% GMV growth in 2026, but still increased the price target to $94 from $88 [1] Market Context - eBay's stock saw a 4.5% increase following the earnings report, while Etsy's stock rose by about 10% due to the acquisition news [1] - The overall market is experiencing volatility, with mixed performances across sectors, leading to cautious sentiment among some investors [2][6]