eBay is experiencing a notable recovery after years of stagnant growth, with Q1 2026 showing a 19% year-over-year revenue increase and an 18% rise in gross merchandise volume (GMV). The company's advertising revenue also surged by 33%, indicating a successful monetization strategy.
The recent bid from GameStop to acquire eBay at $125 per share, although rejected, adds a layer of interest to eBay's improving fundamentals. The acquisition of Depop, which caters to a younger demographic with 7 million active buyers, further enhances eBay's growth potential in the resale market.
The stock has established a solid support level around $105, and analysts suggest that a sustained move above $112–$115 could lead to new 52-week highs. eBay's current valuation is attractive compared to industry peers, especially given its higher profitability and reaccelerating revenue growth.
The bullish outlook is supported by the company's capital returns, including $639 million returned to shareholders in Q1 through buybacks and dividends. Investors may consider a short put vertical options strategy to capitalize on eBay's positive momentum while managing risk around key support levels