eBay (NASDAQ: EBAY) stock has been on a roll lately, surging 10% on Wednesday, January 8, 2025, following Meta Platforms' announcement that it would allow certain eBay listings to appear on Facebook Marketplace. This collaboration with Meta is expected to boost eBay's user growth and transaction volume, driving the stock's recent gains. However, eBay's stock performance has been driven by more than just this partnership. The company's aggressive share repurchase program and solid dividend growth have also played significant roles in its stock price increase.



eBay's share repurchase program has been a key driver of its stock price increase. The company has spent $7 billion on share repurchases, leading to a 9% fall in total shares outstanding. This reduction in the number of shares has helped to boost the company's earnings per share (EPS) and increase the value of each share. As a result, eBay's stock price has seen a significant increase, rising from $40 in early 2023 to $63 now, an increase of 75%. This can be attributed to the company's aggressive share repurchase program, which has helped to drive up the stock price and create value for shareholders.



eBay's revenue growth has also been a significant factor in its stock price increase. The company's revenue has grown from $9.8 billion in 2022 to $10.3 billion in 2023, driven by growth in its focus categories such as auto parts and accessories, collectibles, handbags, refurbished goods, and luxury fashion. This has helped eBay see higher gross merchandise volume (GMV) and take rate over the recent quarters. The company's focus on AI to bolster its sales by offering personalized recommendations has also contributed to its revenue growth.



eBay's stock price surge can also be attributed to its solid dividend growth. The company offers a dividend yield of 1.56% and a buyback yield of 5.20%, which can attract income-oriented investors and boost the stock's appeal. eBay's dividend growth has been consistent, with an 8% increase in its dividend per share in 2024. This consistency in dividend growth, combined with the company's strong revenue and earnings growth, has contributed to its stock price increase.

In conclusion, eBay's stock price surge can be attributed to several factors, including Meta's partnership, the company's aggressive share repurchase program, its strong revenue growth, and solid dividend growth. As eBay continues to execute on its strategic initiatives and deliver strong financial performance, investors can expect the company's stock price to remain resilient. However, it is essential to monitor the company's progress and assess the potential impact of any changes in the market landscape or competitive dynamics.