Shares of eBay jumped 10% in extended trading after the company posted stronger-than-expected results for the second quarter and issued an optimistic forecast for the upcoming period. The online marketplace delivered adjusted earnings per share of $1.37, surpassing analysts’ estimates of $1.30. Revenue also beat expectations, coming in at $2.73 billion compared to the predicted $2.64 billion.
Gross merchandise volume (GMV), which represents the dollar value of items sold on the platform, grew 6% year over year to $19.5 billion, outperforming analyst expectations of $18.9 billion. Looking ahead, eBay projected third-quarter revenue between $2.69 billion and $2.74 billion, exceeding Wall Street’s consensus estimate of $2.66 billion. The company also forecast adjusted earnings per share of $1.29 to $1.34, near the anticipated $1.31 per share.
eBay expects third-quarter GMV to fall between $19.2 billion and $19.6 billion, again topping consensus estimates of $18.8 billion. The company’s guidance accounts for potential disruptions from incoming tariffs and the elimination of remaining de minimis exemptions, a change set to take effect on August 29 after President Donald Trump signed an executive order closing the duty-free loophole on low-value shipments to the U.S.
CEO Jamie Iannone expressed confidence in eBay’s ability to handle uncertainties from these tariff policies. He noted that when China’s de minimis exemption was removed, shipments slowed but many sellers adapted by making products available in other international markets like the U.K. and Germany. Iannone also highlighted that eBay had “forward deployed” roughly 75% of its inventory from China into the U.S. ahead of these policy changes.
Facing fierce competition from Amazon, Walmart, Etsy, and newer low-cost platforms like Temu and Shein, eBay has focused on attracting “enthusiast” shoppers through niche categories such as collectible sneakers, trading cards, used luxury goods, and auto parts. The company has also integrated more artificial intelligence tools, including a shopping agent launched earlier this year, to enhance product discovery and improve the shopping experience.
“We’re already seeing tangible benefits from generative AI on our P&L and believe we’re just scratching the surface,” Iannone said.
In May, eBay appointed former PayPal executive Peggy Alford as CFO and undertook a leadership restructuring aimed at uniting its technology teams to drive innovation.
As of the latest close, eBay’s shares have risen about 25% year to date, outperforming the Nasdaq’s 9% gain.
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