According to The Fly, Morgan Stanley sees long-term growth potential in eBay Live, while Wells Fargo flags potential risks to earnings growth from investment spending and competition.
- According to the Fly, Morgan Stanley analyst Nathan Feather raised his price target on eBay to $132 from $127, maintained an ‘Overweight’ rating and named the stock his Top Pick among companies he covers.
- Wells Fargo lowered its price target on eBay to $91 from $92 and maintained an ‘Underweight’ rating.
- Wells Fargo’s fiscal 2027 EPS estimate is 8% below consensus, as the firm sees risks from potential investment in Live and consumer-to-consumer initiatives amid competition from Vinted.
eBay (EBAY) is heading into its third-quarter earnings report with Wall Street divided over whether live commerce can sustain its growth momentum.
Morgan Stanley named EBAY stock its Top Pick and raised its price target to $132, while Wells Fargo maintained an Underweight rating and warned that investment spending and competition from Vinted could weigh on earnings growth.
EBAY shares were trading 1% higher in premarket trading on Monday at the time of writing.
Morgan Stanley Sees Live Commerce As A Growth Driver
Morgan Stanley analyst Nathan Feather raised his price target on eBay to $132 from $127, maintained an ‘Overweight’ rating and named the stock his Top Pick among the stocks in his coverage, according to The Fly.
Feather said the U.S. live commerce market had grown more than fivefold to $27 billion over the past two years. He estimated that eBay Live accounted for at least 40% of eBay’s fiscal 2026 gross merchandise volume (GMV) growth.
The analyst called live commerce “the missing piece” explaining eBay’s recent acceleration. Morgan Stanley estimates eBay Live could contribute about four percentage points to annual GMV growth from FY2026 through FY2030.
Wells Fargo Flags Earnings Growth Risks
Wells Fargo lowered its price target on eBay to $91 from $92 and maintained an ‘Underweight’ rating, according to The Fly.
The firm expects eBay to deliver a third-quarter GMV beat and fourth-quarter guidance about 1% above consensus. However, Wells Fargo sees continued risks to earnings-per-share (EPS) growth as the company invests in new opportunities, including Live and consumer-to-consumer initiatives, while competing with Vinted.
Wells Fargo’s fiscal 2027 EPS estimate is 8% below analyst consensus, reflecting its more cautious earnings outlook.
eBay Reports Q3 Earnings Next Month
eBay is expected to report its third-quarter 2026 results in the next few weeks. Analysts expect earnings of $1.39 per share on revenue of approximately $3.10 billion, according to Fiscal AI.
In its second-quarter 2026 results, reported on August 5, eBay posted $22.4 billion in GMV, up 15% year over year, while revenue rose 15% to $3.1 billion. The company also reported that eBay Live’s GMV grew roughly eightfold year over year across its seven markets.
For the third quarter, eBay guided for GMV of $22.0 billion to $22.4 billion, revenue of $3.07 billion to $3.12 billion, and non-GAAP earnings per share of $1.36 to $1.42.
GMV measures the total value of paid transactions on eBay’s marketplace platforms, including shipping fees and taxes, before adjustments for returns or cancellations. It differs from the revenue eBay recognizes.
How Retail Views EBAY
Retail sentiment on Stocktwits remained ‘Neutral,’ while message volume was ‘Extremely High’ over the past 24 hours.
EBAY shares have gained over 31% year-to-date.
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