San Jose, California, May 1, 2026, 15:03 PDT
On Friday, eBay Inc. found itself the subject of new deal chatter, just 48 hours past its upbeat first-quarter earnings. A Reuters piece cited the Wall Street Journal, saying GameStop is gearing up for a potential bid for the online marketplace. eBay stock jumped roughly 9% after hours; shares of GameStop were up around 3%, according to Reuters.
The timing is notable: eBay had just handed investors a refreshingly straightforward growth narrative, something it hadn’t managed in years. Revenue jumped 19% to $3.089 billion. Gross merchandise volume—GMV, the broad tally of everything sold on the platform—came in 18% higher, reaching $22.2 billion. Strip out currency moves, and GMV was still up 14%.
eBay’s numbers came in ahead of what analysts had penciled in. Wall Street had anticipated revenue of $3.04 billion with adjusted earnings per share at $1.58. Instead, the company turned in adjusted EPS of $1.66, with net income hitting $512 million, or $1.12 a share. According to The Wall Street Journal, trading cards, toys, coins, action figures and comic books drove growth, while motors, electronics, and fashion pitched in too.
CEO Jamie Iannone called it “a strong start to the year,” adding that eBay saw “accelerated GMV growth.” CFO Peggy Alford described the quarter’s numbers as evidence of “robust GMV and revenue growth” paired with “healthy earnings,” also highlighting operating leverage. eBay Inc.
Iannone told Reuters that collectibles, trading cards, toys, action figures, and fashion all turned in robust performance. Motors, parts, and accessories chipped in almost two percentage points of growth. For the second quarter, eBay projected revenue between $2.97 billion and $3.03 billion, nudging past the $2.97 billion consensus from LSEG.
The sharpest competition is playing out in resale and fashion. eBay’s $1.2 billion all-cash deal to acquire Depop from Etsy is tracking toward a close by the end of the third quarter, with green lights in the U.S. and Germany, but regulators in the U.K. and Australia still mulling. On the earnings call, Iannone called out how crowded the global fashion recommerce space has become, saying it’s “very competitive,” and pointing to rivals like Vinted raising customer expectations. The Motley Fool
eBay has ramped up its push into advertising, live shopping, and AI-driven tools. The company pulled in $581 million in total ad revenue over the quarter, with $555 million coming from its own ad products—a 33% jump year-over-year. Reuters reported that eBay’s “Magical Listings” AI feature led to a surge of more than 50% in new listing rates. The company, for its part, said its card scanning tool, powered by AI, has now processed over 30 million scans. eBay Inc.
eBay kept cash flowing, turning out $970 million in operating cash flow and $898 million in free cash flow from continuing operations. The company gave back $639 million to shareholders—$500 million through buybacks, with another $139 million handed out as dividends. A recent filing indicated that, as of the end of March, $2.3 billion remained on its repurchase authorization.
Investors won’t have much cushion next quarter. eBay’s GMV outlook lands at $21.3 billion to $21.7 billion—lower than what it booked in Q1. Adjusted EPS guidance? Comes in at $1.46 to $1.51, just under where analysts’ midrange expectations sit, according to StockStory. The company’s filing flagged a list of headwinds: tougher competition, shaky consumer engagement, trade policy shifts, currency swings, and regulatory pressure.
The GameStop angle is adding a fresh jolt of uncertainty. According to Reuters, GameStop—market cap just shy of $12 billion—has quietly been accumulating eBay shares. eBay, which is valued at roughly $46 billion, might see an offer from GameStop as soon as later this month. Neither eBay nor GameStop gave Reuters a comment in response.
