GameStop’s Bid for eBay Isn’t Going Anywhere. Another Buyer Could Swoop In

GameStop (GME) audacious bid for eBay (EBAY) may be grabbing headlines, but few on Wall Street believe the deal has a realistic path to completion. The proposed $56 billion takeover, championed by CEO Ryan Cohen, would require the meme-stock retailer to acquire a company nearly four times its own size, which is a financial and strategic stretch that has fueled widespread skepticism among analysts and investors alike.

According to analysts at Wedbush Securities, the more compelling story may not be whether GameStop can buy eBay, but whether the bid could attract a more credible suitor. By thrusting eBay back into the center of M&A conversations, the unsolicited offer may have inadvertently highlighted the company’s underlying value to strategic buyers that previously stayed on the sidelines. In that sense, GameStop’s unlikely pursuit could end up serving as a catalyst rather than a conclusion.

The market appears to agree. While eBay shares initially surged following news of the bid, they have continued trading well below GameStop’s proposed offer price, which is a sign investors doubt the transaction itself will close. Still, the renewed focus on eBay’s marketplace business, cash flow profile, and entrenched position in collectibles and resale commerce has reopened speculation that another bidder could emerge with a far more practical proposal.

About eBay Stock

eBay is a leading e-commerce company that operates one of the world’s most established online marketplaces, connecting millions of buyers and sellers. Headquartered in San Jose, California, the platform facilitates commerce through auction-style listings, fixed-price sales, and mobile apps, catering to individuals and small businesses with a wide range of products from collectibles and electronics to fashion and home goods. The company has a market cap of $47.8 billion.

Shares of eBay have delivered a strong run over the past year, significantly outperforming many e-commerce peers amid improving fundamentals and renewed growth in collectibles and resale categories. The stock has surged 54.88% over the past 52 weeks, while gaining 23.61% year-to-date (YTD).

Momentum accelerated sharply this month after GameStop CEO Ryan Cohen disclosed a $56 billion takeover proposal for the company, reigniting investor interest in eBay’s strategic value. On May 4, shares jumped more than 5% intraday and touched a fresh 52-week high of $111.38, followed by a modest pullback in subsequent sessions.

The rally also reflects broader confidence in eBay’s turnaround efforts. eBay has been pursuing a turnaround strategy to revive growth amid intense competition from larger e-commerce rivals.

Under CEO Jamie Iannone, the company has shifted away from being a broad online marketplace and is instead focusing on higher-value categories such as collectibles, fashion, electronics, and parts, where buyers are more engaged, and margins are stronger.

In addition, the company is investing heavily in AI-powered listing tools, live shopping, advertising, and recommerce initiatives while expanding its consumer-to-consumer ecosystem through acquisitions like Depop, a move aimed at strengthening its position in secondhand fashion and younger demographics.

The strategy is beginning to gain traction, with focus categories, consumer-to-consumer, and recommerce together now accounting for 70% of GMV and delivering double-digit growth.

Even as skepticism remains around GameStop’s ability to complete a deal of this size, the bid itself has helped spotlight eBay as a potentially undervalued strategic asset.

eBay currently trades at a premium compared to the sector median at 21.88 times forward price-to-earnings.

Stable Financial Performance

eBay delivered its first-quarter 2026 results on April 29. For the quarter ended March 31, eBay reported revenue of $3.1 billion, up 19% year-over-year (YOY). GMV climbed 18% YOY to $22.2 billion, signaling broad-based strength in marketplace activity.

Profitability also improved meaningfully. On an adjusted basis, non-GAAP net income increased 16% YOY to $760 million, while adjusted EPS surged 21% to $1.66 from $1.37 a year earlier, exceeding expectations.

The company’s advertising business remained a major growth driver. Total advertising revenue reached $581 million during the quarter, representing 2.6% of GMV, while first-party advertising products generated $555 million in revenue, up 33% YOY. eBay also generated $970 million in operating cash flow and $898 million in free cash flow.

Management pointed to continued momentum in recommerce and consumer-to-consumer categories as key catalysts.

Furthermore, eBay issued second-quarter 2026 guidance, which was slightly conservative. The company forecast Q2 revenue between $2.97 billion and $3.03 billion. Also, GMV is expected between $21.3 billion and $21.7 billion, while non-GAAP EPS at $1.46 to $1.51.

Analysts forecast EPS of $4.86 for fiscal 2026, a 16.3% YOY jump, followed by a further 11.5% rise to $5.42 in 2027.

What Do Analysts Expect for eBay Stock?

Recently, Bernstein SocGen reiterated a “Market Perform” rating and $95 price target on eBay after reports that GameStop may pursue a takeover bid, arguing the deal appears financially unrealistic given GameStop’s much smaller size. Also, Stifel maintained a “Hold” rating and $98 price target on eBay.

However, eBay has a consensus “Moderate Buy” rating overall. Of the 31 analysts covering the stock, nine advise a “Strong Buy,” two suggest a “Moderate Buy,” 19 analysts are on the sidelines, giving it a “Hold” rating and one “Moderate Sell.”

eBay has slightly surged past the average analyst price target of $107.32, while the Street-high target price of $130 suggests that the stock could rally as much as 20.7%.