Bernstein upgrades shares of eBay, says buy the post-earnings dip

Despite a recent sell-off, Bernstein analyst Nikhil Devnani believes investors should not give up on eBay. He upgraded the online marketplace to outperform, citing improving growth trends as a catalyst for the upgrade. Devnani sees gross merchandise volume growth of 2% heading into next year, with potential expansion to 3% in 2026. Although growth rates may not be exceptional, proving that eBay is a ‘steady grower’ could offer room for upside in the stock. With earnings per share and margins expected to expand, Devnani believes the recent sell-off provides an attractive entry point for investors. While there was a decline in stock following a weaker-than-expected forecast for the current quarter, the analyst remains optimistic about eBay’s turnaround. Shares were up in premarket trading following the upgrade.