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Research Alert: Ebay: Strong Start To The Year, But Is This Growth Sustainable?

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

eBay delivered strong Q1 2026 results, with revenue of $3,089M (+19.5%) beating consensus by $54M and adjusted EPS of $1.66 (+21%) exceeding estimates by $0.08. GMV reached $22.2B (+18%, +14% FX-neutral), an acceleration from Q4's 8% FX-neutral growth. This was led by robust U.S. performance (+27%) and improved international trends (+10%). Growth was supported by heightened bullion demand, strong collectibles performance, and robust advertising revenue of $581M, with first-party ads growing 33%. Management provided above-consensus Q2 GMV guidance of $21.3B-$21.7B and full-year growth of 7.0-7.5% FX-neutral, though this implies a notable deceleration as the year progresses. The pending $1.2B Depop acquisition from Etsy, which is expected to close by the end of Q3 2026, represents a strategic move to expand eBay's reach with younger, fashion-forward consumers. We expect GMV growth to slow as bullion demand normalizes, though focus categories and Depop integration should provide ongoing momentum.

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