EBay Stock On Pace for an All-Time High. Why These Analysts Say Buy.

Shares of the online marketplace were on track for their largest daily percentage increase in 20 years. (Justin Sullivan/Getty Images)

Shares of eBay were on pace for an all-time high Thursday after the online marketplace beat quarterly earnings expectations and received an upgrade from Wall Street.

The observers who predicted secondhand sellers such as eBay could thrive as tariffs hit new goods have been vindicated, at least for now.

The company posted adjusted earnings of $1.37 a share for the second quarter, surpassing analysts’ consensus call for $1.30, according to FactSet. Revenue totaled $2.73 billion, up from $2.57 billion last year and above Wall Street’s forecast of $2.64 billion.

EBay stock was climbing 18% to $91.67 Thursday, putting it on track for its highest ever close and its largest daily percentage increase since July 21, according to Dow Jones Market Data. The company was the top performer in the S&P 500 .

Wall Street appeared particularly excited about eBay’s execution in so-called focus categories, such as collectibles and motors, parts, and accessories. Gross merchandise value, or GMV, in these categories grew 10% from the previous year, an acceleration from 6% in the first quarter.

“We see the results from Focus Categories as a clear indication of an inflection in the business,” Brian J. Pitz of BMO Capital Markets wrote in a research note Thursday.

BMO upgraded the stock to Outperform from Neutral, raised estimates for 2025 and 2026, and lifted its price target to $102 from $70 after the strong earnings print.

Analysts also were pleased with eBay’s third-quarter outlook, which forecasts revenue and GMV growth between 3% and 5% and adjusted per-share earnings of $1.29 to $1.34.

The guidance “is not only at odds with the recent spate of consumer warnings but also suggests accelerating GMV growth,” wrote Daniel L. Kurnos of Benchmark Equity Research in a research note Thursday. “Economic conditions permitting, eBay is firmly back in the mid-single digit+ GMV growth range once again.”

Benchmark raised its price target for eBay stock to $100 from $78 and reiterated a Buy rating.

Write to Nate Wolf at nate.wolf@barrons.com