Ebay Stock Soars On Meta's Marketplace Partnership: Retail’s Confident About A Boost

Ebay Inc. ($EBAY) stock surged nearly 10% on Wednesday as technology and social media giant Meta said it would allow users to browse eBay listings on the platform, lifting retail sentiment.

Meta said it will launch a test in Germany, France, and the US that will enable buyers to browse directly on Facebook Marketplace while completing their transactions on eBay.

According to media reports, the move could benefit users on both platforms.

Retail sentiment on Stocktwits was ‘bullish’ following the announcement. Message volumes were in the ‘normal’ zone.

EBAY sentiment meter and message volumes on Jan 10 as of 5:33 a.m. ET

A Stocktwits poll also revealed that a majority of retail investors were confident about a major exposure boost for Ebay. But a third saw the partnership as a short-term pop.

Following the news, Morgan Stanley analyst Nathan Feather said the move "could prove to be a win-win partnership" if implemented, Fly.com reported citing the analyst. According to the report, eBay gains from improved distribution with Meta being able to better monetize Marketplace. While several unknowns linger, the move could provide an EBIT lift ranging from 0% to 9%, added the analyst. The Morgan Stanley analyst has an ‘Overweight’ rating with a $70 price target.

Separately, Meta also said it was going to challenge the European Commission’s recent ruling that levied a $825 million penalty for allegedly misusing its dominant position in social media, WSJ reported. EU officials have been probing Meta since 2021 for allegedly hindering competition for online marketplaces in Europe.

EBay stock is up 10.54% year-to-date.

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