eBay Stock Enthralls Wall Street, Retail Traders Alike With Gen-Z-Focused Buy From Etsy

• Depop is a fashion marketplace with deep roots in recommerce and a highly engaged Gen Z and Millennial customer base.
• GlobalData’s Neil Sauders noted that it makes sense for eBay to offer Depop the technology, investment, and infrastructure it sometimes lacked while part of Etsy.
• The company’s fourth quarter revenue rose 15% to $3 billion, compared with Wall Street estimates of $2.87 billion, according to data from Fiscal AI.

Shares of eBay jumped nearly 6% in after-hours trading on Wednesday as investor and retail optimism soared following the company’s decision to buy Depop, a fashion marketplace, from Etsy for $1.2 billion, marking its efforts to tap into the Gen Z population.

The stock is heading for a second day of gains, if momentum holds after the company also posted better-than-expected quarterly results. Shares of eBay have declined 5.7% so far this year, compared to the nearly 39% jump witnessed in 2025.

Etsy Gives Depop Away To eBay

Depop is a fashion marketplace with deep recommerce roots and a highly-engaged Gen Z and Millennial customer base, and has annual gross merchandise sales (GMS) of nearly $1 billion in 2025, including nearly 60% year-over-year growth in the U.S.

As of Dec. 31, the marketplace had 7 million active buyers, nearly 90% of whom are under the age of 34, and more than 3 million active sellers and is a platform where anyone can buy, sell, explore, and discover secondhand fashion.

The companies said that the addition of Depop will accelerate eBay’s consumer-to-consumer strategy by deepening its reach with younger, fashion-forward consumers and expanding its presence in one of the most dynamic areas of resale.

Wall Street’s View On eBay’s Depop Buyout

“While eBay remains one of the largest e-commerce platforms and is a significant player in peer-to-peer and secondhand selling, it suffers from being seen as a more traditional marketplace that lacks some of the edge of newer upstarts,” said Neil Saunders, Managing Director of GlobalData.

He added that this is especially true among younger buyers and sellers, who automatically gravitate toward commerce players they see as having a stronger vibe and social dimension.

“The key to success, however, will be to allow Depop to remain a distinct entity with its own image and feel,” Saunders said, adding that eBay should neither try to change the brand position nor should it be tempted to expand Depop into categories and segments that do not sit naturally with the audience.

Sauders noted that it makes sense for eBay to offer Depop the technology, investment, and infrastructure it sometimes lacked while part of Etsy.

eBay’s Earnings Snapshot

The company’s fourth quarter revenue rose 15% to $3 billion, compared with Wall Street estimates of $2.87 billion, according to data from Fiscal AI. The adjusted earnings per share for the quarter came in at $1.41, topping expectations of $1.35.

The company expanded eBay Live, its interactive live-stream shopping experience, to Germany and Australia to attract more customers to its platform, and also posted its largest-ever slate of eBay Live holiday shopping events, driving real-time engagement with preloved fashion, sneakers, collectibles, and refurbished tech during the peak shopping season.

How Are Stocktwits Users Reacting?

Retail sentiment on eBay jumped to ‘extremely bullish’ from ‘bullish’ a day ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.

A user on Stocktwits said that buying Depop fixes “their younger audience gap” and added that “this new leadership has really done a great job updating eBay and running this company.”

In the last 24 hours, retail message volumes on the stock jumped 1,280% on Stocktwits.

Shares of eBay jumped 18% in the last 12 months.

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Also See: BKNG Stock Climbs After Hours: Q4 Earnings Beat, Stock Split And $700M AI Push Makes Traders Bullish

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