Why Is eBay (EBAY) Stock Up Premarket? $1.2B Cash Acquisition

Shares of eBay Inc. (NASDAQ: EBAY) are surging in premarket trading on Thursday, February 19, 2026, following a blockbuster after-hours session that saw the stock jump more than 8%. The catalyst: a one-two punch of stronger-than-expected Q4 2025 earnings and a major strategic announcement — eBay is acquiring secondhand fashion marketplace Depop from Etsy, Inc. (NASDAQ: ETSY) for approximately $1.2 billion in cash.

The deal signals eBay’s aggressive push into the fast-growing recommerce space and its bid to capture a younger generation of shoppers, with Depop’s user base skewing heavily toward Gen Z and Millennials.

eBay’s $1.2B Depop Acquisition: What You Need to Know

On February 18, 2026, eBay and Etsy jointly announced a definitive agreement for eBay to acquire Depop, a mobile-first, community-powered fashion resale marketplace, for approximately $1.2 billion in cash. The deal is expected to close in the second quarter of 2026, pending regulatory approval, and has been unanimously approved by both companies’ boards of directors. Depop will retain its name, brand, and platform culture following the close of the transaction.

Depop brings compelling metrics to the table: the platform generated roughly $1 billion in gross merchandise sales in 2025, including nearly 60% year-over-year growth in the U.S. It counts 7 million active buyers and more than 3 million active sellers, with nearly 90% of buyers under the age of 34, a demographic that has historically been difficult for eBay to attract.

For eBay, fashion already represents more than $10 billion in annual GMV, and U.S. fashion GMV grew 10% year-over-year in 2025, making Depop a natural complement to its existing category strategy.

eBay CEO Jamie Iannone framed the acquisition as a key step in the company’s recommerce leadership ambitions, noting that Depop will benefit from eBay’s global scale, shipping solutions, financial services, and its Authenticity Guarantee program.

For Etsy, the sale marks a strategic pivot back to its roots. The company originally acquired Depop for roughly $1.62 billion nearly five years ago as part of a “house of brands” strategy that it has since unwound, having also sold off Elo7 and Reverb in prior years. Etsy plans to use the proceeds for share repurchases and reinvestment in its core marketplace.

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EBAY Stock Update: Premarket Rally and Outlook

As of premarket trading on February 19, 2026 at 5:16 AM EST, EBAY shares were quoted at $88.80, up $6.62 or 8.06%, building on the regular session close of $82.18 (+2.79%) on February 18. Volume during the regular session reached approximately 11.1 million shares, more than double the average daily volume of 4.4 million, reflecting heightened investor interest ahead of the earnings and deal announcement. The stock’s 52-week range sits between $58.71 and $101.15, and the analyst consensus price target stands at $94.67, suggesting further upside from current premarket levels.

The earnings results that accompanied the acquisition news were equally impressive. eBay reported Q4 2025 revenue of approximately $3 billion, a 15% year-over-year increase that topped analyst expectations of around $2.87–$2.88 billion.

Adjusted EPS came in at $1.41, beating the consensus estimate of $1.35, and gross merchandise volume reached $21.2 billion, a 10% increase year-over-year and ahead of Wall Street’s $20.8 billion forecast. Advertising revenue grew to $544 million in the quarter, representing 2.6% of GMV, while the company returned $756 million to shareholders via buybacks and dividends.

Looking ahead, eBay’s Q1 2026 guidance was equally upbeat, with the company projecting revenue of $3.0–$3.05 billion and adjusted EPS of $1.53–$1.59, both ahead of analyst expectations. The board also raised the quarterly dividend by 7% to $0.31 per share and authorized an additional $2 billion for its stock repurchase program.

From a valuation standpoint, EBAY trades at a forward P/E of 13.91 with a profit margin of 20.37% and return on equity of 42.43%, while carrying $3.38 billion in cash, enough to fund the Depop deal entirely from its balance sheet.

Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.