See how eBay (EBAY) measures up after AI focus, Depop integration, and 800 job cuts

EBAY plans to cut about 800 jobs, or about 6% of its global workforce, in a clear reset, redirecting spending to artificial intelligence, recommerce and Depop integration.

Check out our latest analysis for eBay.

The reset comes after a busy few weeks for eBay, which included the Depop acquisition, new guidance for Q1 2026, a dividend increase, further share buybacks, and new shelf listings that could increase funding flexibility. Against this backdrop, the company’s latest share price of $89.63 outperforms its 90-day stock return of 9.3% and its one-year total shareholder return of 36.5%, although short-term momentum has weakened slightly over the last month.

If you’re wondering how else this AI pivot could help technology reshape commerce, you might want to check out these 60 profitable AI stocks that aren’t just burning cash for a starting list of ideas that already have a track record of profitability.

With the stock price rising significantly over the past year, trading around USD 89.63 with signs such as an intrinsic value estimate gap and a dividend increase, the key question is whether eBay is still mispriced or whether the market already sees the next phase of growth coming.

Most popular story: 5.4% underrated

With eBay’s fair value hovering around $94.73 compared to its last closing price of $89.63, the current setup hinges on how effectively the business turns AI into profit.

Enhanced use of generative AI for listing optimization, ad targeting, search relevance, and customer retention should reduce operating costs, improve marketing ROI, and increase GMV per user, positively impacting bottom line and bottom line.

Read the whole story.

Want to know what’s behind the AI ​​profit story? Revenue, margins, and future earnings multiples are all factored into this fair value. The exact combination may surprise you.

Result: Fair value $94.73 (undervalued)

Read the full explanation to understand what’s behind the predictions.

However, this will depend on whether focus categories and GenAI spending continue to pay off, and competition for younger buyers and a slowdown in collectibles could soon put that theory to the test.

Learn about the key risks in this eBay story.

next step

With both risks and rewards in the mix, do you think the current story holds perfectly, or could the market be tilted too far in one direction? Act fast, find out the details for yourself, and weigh the trade-offs between potential upside and watch points in 3 key rewards and 2 key warning signs.

Looking for more investment ideas?

Before moving forward, take a look at some focused stock ideas that could complement whatever stance you take on eBay to build a stronger watchlist.

This article by Simply Wall St is general in nature. We provide commentary using only unbiased methodologies, based on historical data and analyst forecasts, and articles are not intended to be financial advice. This is not a recommendation to buy or sell any stock, and does not take into account your objectives or financial situation. We aim to provide long-term, focused analysis based on fundamental data. Note that our analysis may not factor in the latest announcements or qualitative material from price-sensitive companies. Simply Wall St has no position in any stocks mentioned.

Do you have feedback on this article? Interested in its content? Please contact us directly. Alternatively, email editorial-team@simplywallst.com.