eBay's Earnings Boost Stock to All-Time Highs, Driven by AI and Live Services

eBay has reached all-time highs following better earnings, driven by AI and Live services. Despite a 20% stock gain, the company is not guiding to massive growth. The online marketplace has seen durable growth through its focus on innovation and strategic services.

eBay Inc. (EBAY) reported strong earnings for the second quarter of 2025, with gross merchandise volume (GMV) growing by 4% to $19.5 billion, and revenue rising over 4% to $2.73 billion. The company's CEO, Jamie J. Iannone, highlighted the significant growth in focus categories, particularly collectibles, and the momentum in trading cards, notably Pokemon cards. The integration of inventory from Goldin Auctions, expansion of luxury authentication to the U.K., and leveraging generative AI for listing optimization and CRM personalization were key strategic initiatives [1].

CFO Peggy M. Alford provided guidance for the third quarter, expecting GMV between $19.2 billion and $19.6 billion, representing FX-neutral growth between 3% and 5% year-over-year. Revenue is forecast between $2.69 billion and $2.74 billion, also implying FX-neutral growth of 3% to 5%. Non-GAAP earnings per share are forecast between $1.29 and $1.34, representing year-over-year growth between 8% and 12%. For the full year, the company expects non-GAAP earnings per share growth between 10% and 12% year-over-year [1].

The company highlighted potential challenges, including potential disruptions from impending tariffs and the potential elimination of de minimis exemptions on other trade corridors. Despite these challenges, eBay's management maintained a confident and optimistic tone, emphasizing the company's ability to lean into market efficiencies and the long-term potential of its AI initiatives [1].

eBay's stock gained 20% following the earnings report, but the company is not guiding to massive growth. The company's focus on innovation and strategic services, such as AI-driven personalization and expansion of focus categories, has driven durable growth. The company's investments in eBay Live, which has seen expansion into new categories and geographies, and ongoing enhancements to seller and buyer experiences, are also contributing to its success [1].

The company's strong performance in Q2 2025 reflects broad-based growth, with particular strength in focus categories such as collectibles and fashion. The company's strategic investments in AI and Live services are driving this growth, and the company's management is confident in the durability of its marketplace model and the momentum behind its transformation initiatives [1].

References:
[1] https://seekingalpha.com/news/4475200-ebay-outlines-3-5-percent-gmv-and-revenue-growth-targets-for-q3-2025-as-ai-and-focus