Is eBay Stock Outperforming the Dow?

StoneX reiterated a Buy rating on eBay (NASDAQ:EBAY) after the company eliminated selling fees for private sellers in France and Italy. eBay's stock has risen 22% year-to-date to $105, though it is trading above its Fair Value. The company reported stronger-than-expected Q2 earnings, with non-GAAP EPS of $1.60 and revenue of $3.10 billion, and raised its full-year outlook. Analysts have mixed reactions, with price targets ranging from $110 to $145.

GameStop reported a 34.6% YoY increase in gross profit to $340.3M, with a 40.7% gross margin, driven by higher-margin collectibles. Net income surged 769.6% to $389.6M, including $268.4M in gains from eBay-related derivatives. Q2 sales are expected to decline to $780M-$800M, but profits are forecast to rise. GameStop now holds 43.4M eBay shares worth $4.95B, raising financing and strategic overlap questions.

eBay (EBAY) reported Q2 2026 earnings and revenue above expectations, driven by higher Gross Merchandise Volume and a 25% year-over-year increase in advertising revenue. The company also raised its Q3 outlook and declared a cash dividend. eBay's long-term projections include $14.5 billion in revenue and $2.7 billion in earnings by 2029, representing 6.5% yearly revenue growth and a $0.5 billion earnings increase from current levels.

GameStop (GME) shares rose 0.5% after hours Tuesday as shareholders approved a proposal to increase authorized Class A common shares, supporting its potential eBay (EBAY) acquisition. The amendment passed with 68.7% of votes. GameStop's offer for eBay, rejected earlier, was $125 per share. CEO Ryan Cohen backed the acquisition, and shareholders also re-elected directors and approved executive compensation. GME stock had closed down 2.46% in regular trading.

GameStop (GME) increased its economic exposure to eBay (EBAY) to 6.55% via direct ownership and derivatives, up from 5%. The move follows GameStop's $56B takeover proposal, which eBay rejected. GameStop CEO Ryan Cohen aims to cut eBay's expenses by $2B annually. GME stock is up 10% YTD, while EBAY has risen 31%.

GameStop shares rose 0.90% to $19.15 ahead of its Q2 earnings report on Sept. 8. The company expects Q2 net income of $290M-$310M, driven by $238M gains from its eBay stake, despite a revenue decline to $780M-$800M. GameStop's strategy includes a potential eBay acquisition and a $1.4B convertible note exchange.