EBay forecasts upbeat revenue, buys Depop to boost fashion presence

Core Viewpoint - EBay Inc has forecasted first-quarter revenue above Wall Street estimates and announced the acquisition of fashion marketplace Depop for nearly $1.2 billion, resulting in a significant increase in its share price [1][2]. Financial Performance - EBay expects first-quarter revenue to be between $3 billion and $3.05 billion, surpassing analysts' average estimate of $2.80 billion [2]. - The company reported fourth-quarter revenue of $2.97 billion, exceeding the estimate of $2.88 billion, with a gross merchandise volume (GMV) growth of 10% to $21.24 billion [4]. Acquisition Details - The acquisition of Depop is aimed at enhancing EBay's presence in the pre-loved fashion category, which is experiencing strong momentum [2][3]. - The deal is expected to close in EBay's second quarter and is projected to contribute one to two percentage points to total GMV growth year-over-year by 2026 [3]. Market Strategy - EBay is focusing on "recommerce" and its role in the circular economy by emphasizing pre-owned, refurbished, and authenticated goods, which aligns with the younger generation's interest in sustainability and recycling [1][3].