eBay Earnings Preview: Stock Setting Up To Test $100 Resistance

eBay Inc. (NASDAQ: EBAY) prepares to release its third-quarter earnings report after market close today, against a backdrop of bullish market conditions. With eBay's stock having looked to retest the $100 resistance early, only to pull back, now the question is whether the earnings print can deliver the boost that bulls are looking for in order to make a sustained push higher.

EPS is expected to come in at $1.33, a jump on the $1.19 delivered in the same quarter last year. This figure also have to be considered against the previous quarter's impressive $1.37, which surpassed estimates of $1.30. Revenue for Q2 2025 also exceeded expectations, reaching $2.73 billion against an anticipated $2.64 billion. Those strong results contributed to a nearly 10% surge in eBay's stock price after hours, setting a high bar for the upcoming announcement.

Revenue for this quarter is currently expected to match that ($2.73B), for a 6% annualised growth rate.

Several key developments have shaped eBay's recent performance. A significant partnership with Meta, announced in January 2025, allows eBay sellers to list items directly on Facebook Marketplace, which saw eBay's stock jump approximately 12% following the announcement.

Analyst sentiment has also been largely positive, with several firms adjusting their price targets upward. TD Cowen raised its price target from $80 to $84, citing anticipated growth in Gross Merchandise Volume (GMV) driven by strong U.S. consumer spending and favorable foreign exchange conditions. Morgan Stanley increased its price target more aggressively, from $89 to $102, maintaining an “Overweight” rating and signaling confidence in eBay's long-term prospects. B. Riley also elevated its price objective from $94 to $96, assigning a “Buy” rating. The average price target from these analysts suggests continued upside potential for eBay's stock.

eBay's recent strategic initiatives also warrant attention. The introduction of free returns for qualifying vehicle parts and accessories aims to enhance customer satisfaction and competitiveness in the automotive parts market. Furthermore, the expansion of the ‘Endless Runway' initiative into circular fashion, partnering with designers to incorporate pre-owned items into fashion shows, underscores eBay's commitment to sustainability and taps into the growing resale apparel market.

Price Targets

While the prevailing sentiment surrounding eBay leans towards optimism, the company's heavy reliance on GMV growth makes it vulnerable to fluctuations in consumer spending. While the Meta Platforms partnership holds promise, realizing its full potential requires seamless integration and effective execution.

Furthermore, the competitive landscape in e-commerce is becoming increasingly cutthroat, with established giants and emerging players vying for market share. eBay's ability to maintain its edge in this environment is far from guaranteed.

The Q3 2025 earnings report will provide valuable insights into the company's progress on these fronts and its overall financial health. Investors should pay close attention to key metrics such as GMV growth, revenue, EPS, and management's outlook for the future. 

After a YTD rally of 58%, the stock has plenty priced in, but just how far can this one go? There is some resistance at $100, but a break above would setup a period of price discovery. Time will tell.