eBay Smashes Q4 Estimates, Stock Surges After Hours
eBay posts $3B in Q4 revenue, beating expectations, and announces $1.2B Depop acquisition to court younger shoppers.
eBay just dropped a Q4 earnings report that turned heads. Revenue hit $3 billion, up 15% year-over-year and comfortably ahead of the $2.87 billion analysts expected. Gross merchandise volume climbed 10% to $21.2 billion.
The company also issued Q1 profit guidance that came in above estimates. EBAY stock jumped more than 6% in after-hours trading.
But the bigger strategic play? eBay agreed to acquire Depop for roughly $1.2 billion. The move is a clear bid to pull in younger buyers and carve out a sharper identity in an e-commerce landscape that's getting more crowded by the quarter.
Depop's Gen Z-heavy marketplace gives eBay something it desperately needs — cultural relevance with the next generation of online shoppers. Whether that translates to sustained growth is the real question.