EBay doesn't need Ryan Cohen for its comeback. How to profit from the turnaround

§ 01 Executive Snapshot

• What: eBay is demonstrating signs of growth and recovery despite previous skepticism from investors.
• Who: eBay, GameStop (Ryan Cohen), and Depop are the key players involved in this narrative.
• Why it matters: The revitalization of eBay's core business and the potential acquisition by GameStop could reshape the company's market position and investor sentiment.

§ 02 Key Developments

• eBay reported a revenue growth of 19% year over year in Q1 2026, indicating a significant recovery in its marketplace operations.
• Gross Merchandise Volume (GMV) also grew by 18%, showcasing increased transaction activity on the platform.
• First-party advertising revenue surged by 33%, contributing to a high-margin growth strategy for eBay.
• The acquisition of Depop brought approximately 7 million active buyers, with nearly 90% of them under 35 years old, enhancing eBay's appeal to younger consumers.
• eBay returned $639 million to shareholders in Q1 through buybacks and dividends, including $500 million in share repurchases.

§ 03 Strategic Context

• eBay's marketplace growth had stalled in previous years, leading to skepticism from analysts and investors regarding its long-term viability.
• The company's renewed focus on advertising and the acquisition of Depop align with broader trends in consumer behavior favoring re-commerce and younger demographics.

§ 04 Strategic Implications

• eBay's improving fundamentals suggest potential for a valuation reset, as it is currently trading at a discount compared to industry peers while showing stronger profitability.
• The combination of revenue acceleration and strategic acquisitions positions eBay for sustained growth in a competitive market.

§ 05 Risks & Constraints

• eBay's turnaround is dependent on continued execution of its growth strategies and the successful integration of Depop into its operations.
• Market volatility and competitive pressures from other e-commerce platforms could hinder eBay's recovery trajectory.

§ 06 Watchlist / Forward Signals

• Investors should monitor eBay's stock performance, particularly its ability to maintain a support level above $105 and reach the $112–$115 range for potential new highs.
• Future earnings reports will be critical in assessing the sustainability of eBay's growth and the impact of its advertising and re-commerce strategies.