eBay delivered a robust financial performance for the third quarter of 2025, yet investor sentiment quickly soured as management issued a restrained outlook for the crucial holiday period. The online marketplace leader reported quarterly figures that surpassed market projections, but this triumph was tempered by concerns over future growth momentum.
Quarterly Performance Exceeds Expectations
On October 29, eBay announced impressive third-quarter results for 2025. The company achieved adjusted earnings of $1.36 per share, outperforming the $1.33 per share consensus among market analysts. Revenue reached $2.82 billion, representing a substantial 9.5 percent year-over-year increase and exceeding forecasts.
The positive operational metrics extended to the company’s core marketplace activities. Gross merchandise volume climbed 10 percent to $20.1 billion, demonstrating strong platform engagement. Particular strength emerged in focused categories including collectibles, automotive parts, and fashion merchandise.
Guidance Disappointment Triggers Share Decline
Despite the strong quarterly results, investor attention quickly shifted to the company’s fourth-quarter projections. Management’s forecast for earnings between $1.31 and $1.36 per share fell short of some Wall Street expectations. This cautious stance prompted a significant market reaction, with eBay shares plunging more than 14 percent the following day as investors expressed their disappointment.
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The company’s advertising business provided a notable bright spot, with revenue surging 25 percent to $496 million. This growth highlights the success of strategic initiatives including artificial intelligence investments and expansion of the authenticity guarantee program.
Divergent Analyst Perspectives Emerge
Financial analysts have responded to these mixed signals with varying recommendations. Needham upgraded its position on eBay shares to a buy recommendation while raising its price target to $115. Conversely, Goldman Sachs maintained its sell rating despite slightly increasing its price objective to $78. The average analyst rating currently stands at “Hold” with a consensus price target of $93.74, suggesting potential upside from the current trading level around €70.
The central question facing investors is whether management’s conservative guidance represents prudent planning or indicates genuine concerns about growth deceleration. The upcoming holiday shopping season will likely provide the definitive answer to whether eBay faces unexpected growth challenges or is strategically positioning itself for sustainable performance.
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