On Thursday, eBay (EBAY) extended gains after the e-commerce giant said it’ll lay off nearly 800 of its employees, effectively reducing its global headcount by about 6%. Investors also cheered EBAY because it posted a market-beating Q4 and issued solid guidance for the full year on Feb. 26, helping the stock breach its 20-day moving average (MA) at the $86 level.
Despite this surge, eBay stock remains down more than 7% versus its year-to-date high.
Should You Invest in eBay Stock After Q4 Earnings?
For EBAY investors, the latest round of restructuring is not a sign of distress, but a strategic pivot toward high-growth sectors like artificial intelligence (AI) and “re-commerce.”
According to management, these layoffs will free up capital to reinvest in areas tied to growth, like the Gen Z-favored fashion marketplace Depop. Integrating Depop’s trendy, social-driven platform with eBay’s massive scale creates a powerful strategy that could help reduce overhead.
EBAY stock is attractive because tapping into a younger demographic transforms it from a legacy auction site into a modernized powerhouse for circular fashion and collectibles.
Bank of America Sees Further Upside in EBAY Shares
Bank of America analysts also recommend buying eBay shares following its Q4 results and layoffs announcement, seeing a clear path for them to hit $102 by year-end.
In its research note, the investment firm dubbed EBAY’s job cuts a calculated resource allocation rather than a desperate attempt to lower costs.
By shifting capital away from redundant roles and toward emerging growth drivers like eBay Live and AI-enhanced seller tools, the company is positioning itself for long-term margin expansion.
BofA highlighted that EBAY’s ability to drive higher revenue per employee — even amid stabilizing gross merchandise volume — makes it a compelling investment for value and growth investors alike
What’s the Consensus Rating on eBay?
Note that BofA isn’t the only Wall Street firm that’s recommending buying EBAY shares at nearly 18x forward earnings.
According to Barchart, the consensus rating on eBay sits at “Moderate Buy” currently, with the mean target of about $100 indicating potential upside of roughly 15% from here.
On the date of publication, Wajeeh Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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