← eBay overview

eBay vs MercadoLibre: why the prices moved differently

Weekly · monthly · quarterly news summaries, side by side in time

eBay Inc (EBAY)

Q3 2026
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eBay's UK fee-free bet and GameStop stake drove a 52% surge

  • UK fee-free experiment sparks 52% stock surge eBay's UK experiment to drop selling fees drove a 52% stock surge, showing investors that fee cuts can boost buyer and seller activity and revive growth.

    This was the single biggest positive price driver in the quarter.

  • Q2 revenue up 15%, net income up 51% eBay reported Q2 revenue of $3.13B, up 15%, and net income up 51%, giving investors concrete evidence that the business was accelerating, not just cutting costs.

    Strong financial results directly supported the stock's rise.

  • GameStop's $4.9B stake and UK approval of Depop GameStop's roughly $4.9B, 43.4-million-share stake signaled outside confidence, while UK regulators cleared the $1.2B Depop acquisition, removing a key deal risk.

    Both events added confidence and removed uncertainty for investors.

  • GameStop bid uncertainty, Meta threat, downgrade, Icahn push GameStop's $125-per-share hostile bid created board uncertainty and could be withdrawn, Meta's Seller app threatens high-margin sellers, Wells Fargo downgraded eBay over Depop's 2027 earnings drag, and Carl Icahn is pushing for a PayPal spin-off and board seats.

    These risks capped gains and could erase the takeover premium.

August 2026
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GameStop's eBay stake grows, but takeover bid fades

  • GameStop may drop its $56B eBay bid GameStop CEO Ryan Cohen is considering withdrawing his $56 billion buyout offer for eBay, possibly seeking a partnership or joint venture instead. Without a takeover bid, eBay loses the buyout premium that had lifted its stock, so the shares could fall back toward where they traded before the offer.

    This is the key new event that removes the takeover premium supporting eBay's price.

  • eBay buys Etsy's Depop, expanding its marketplace eBay acquired Depop from Etsy, adding a popular secondhand fashion marketplace to its portfolio. This grows eBay's reach in resale and could boost long-term revenue and user growth, a positive for the stock even though the price paid wasn't disclosed.

    This is a new strategic acquisition that directly affects eBay's business and growth outlook.

  • GameStop's $4.9B eBay stake signals confidence GameStop disclosed it owns about 43.4 million eBay shares worth roughly $4.9 billion, making it eBay's second-largest shareholder. That large, committed stake shows strong outside belief in eBay's value and could support the stock by reducing the number of shares available to trade.

    This new disclosure highlights a major shareholder's confidence and potential support for eBay's stock.

  • Cohen buys more GameStop stock, not eBay Ryan Cohen spent $26.4 million buying more GameStop shares, raising his personal stake past 40 million shares. This suggests his focus is shifting back to GameStop rather than pursuing eBay, making it less likely he'll raise his eBay offer and weakening the takeover premium in eBay's stock.

    This new insider buying shows Cohen's priorities may be moving away from an eBay deal.

Latest
▲2▼2

GameStop's eBay stake grows, but takeover bid fades

  • GameStop may drop its $56B eBay bid GameStop CEO Ryan Cohen is considering withdrawing his $56 billion buyout offer for eBay, possibly seeking a partnership or joint venture instead. Without a takeover bid, eBay loses the buyout premium that had lifted its stock, so the shares could fall back toward where they traded before the offer.

    This is the key new event that removes the takeover premium supporting eBay's price.

  • eBay buys Etsy's Depop, expanding its marketplace eBay acquired Depop from Etsy, adding a popular secondhand fashion marketplace to its portfolio. This grows eBay's reach in resale and could boost long-term revenue and user growth, a positive for the stock even though the price paid wasn't disclosed.

    This is a new strategic acquisition that directly affects eBay's business and growth outlook.

  • GameStop's $4.9B eBay stake signals confidence GameStop disclosed it owns about 43.4 million eBay shares worth roughly $4.9 billion, making it eBay's second-largest shareholder. That large, committed stake shows strong outside belief in eBay's value and could support the stock by reducing the number of shares available to trade.

    This new disclosure highlights a major shareholder's confidence and potential support for eBay's stock.

  • Cohen buys more GameStop stock, not eBay Ryan Cohen spent $26.4 million buying more GameStop shares, raising his personal stake past 40 million shares. This suggests his focus is shifting back to GameStop rather than pursuing eBay, making it less likely he'll raise his eBay offer and weakening the takeover premium in eBay's stock.

    This new insider buying shows Cohen's priorities may be moving away from an eBay deal.

July 2026
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eBay's UK fee-free push and Depop win offset by GameStop, Meta threats

  • UK fee-free experiment drives 52% stock surge eBay's UK test of scrapping selling fees for casual sellers sent the stock up 52%, showing its consumer-to-consumer turnaround is working and boosting investor confidence.

    This is the biggest positive force behind eBay's price move in the period.

  • Q2 beat and UK clears Depop deal Q2 revenue rose 15% to $3.13B and net income jumped 51%, beating estimates, while UK regulators cleared the $1.2B Depop acquisition, supporting growth plans.

    Strong earnings and a cleared acquisition are key positive drivers for the stock.

  • GameStop stake and hostile bid create uncertainty GameStop built a roughly 10% stake and made a $125-per-share hostile bid, creating board uncertainty, though Wedbush doubts it succeeds. This weighs on the stock.

    This is a major new risk factor that pressured eBay's price during the period.

  • Meta Seller app and Icahn campaign add pressure Meta's new Seller app threatens eBay's high-margin professional sellers, Wells Fargo downgraded the stock on Depop's 2027 earnings drag, and Carl Icahn is pushing for a PayPal spin-off and board seats.

    These competitive and activist pressures are new negative forces on eBay's outlook.

▼3▲1

eBay's strong Q2 offset by Meta competition and activist pressure

  • Meta's Seller App Threatens eBay's Core Sellers Meta launched a Seller app for Facebook Marketplace, directly targeting eBay's professional sellers with lower fees and AI tools. This threatens eBay's high-margin seller base, pushing the stock down as investors worry about losing market share.

    This new competitive threat directly pressures eBay's core business and was a key driver of the stock's decline this period.

  • Wells Fargo Downgrade on Depop Costs Wells Fargo downgraded eBay to underweight, citing the Depop acquisition will weaken 2027 earnings and require higher marketing spend. This adds to concerns that defending against rivals like Vinted will hurt profits, weighing on the stock.

    The downgrade reflects real concerns about profitability and was a direct catalyst for the stock's drop.

  • Strong Q2 Results and Upbeat Q3 Guidance eBay reported 15% revenue growth to $3.13 billion and 51% higher net income, beating estimates. Q3 revenue guidance also topped expectations, driven by demand for luxury, collectibles, and refurbished goods. This shows the core business is healthy and growing.

    The strong financial performance and guidance are key positives that support the stock's value.

  • Carl Icahn's Activist Campaign Carl Icahn is demanding a PayPal spin-off and board seats, alleging conflicts of interest. This creates uncertainty about eBay's strategy and leadership, which could distract management and unsettle investors.

    Activist pressure introduces strategic uncertainty that can negatively impact investor sentiment.

▲2▼1

GameStop's eBay stake grows, but UK clears Depop and C2C strategy shines

  • GameStop's creeping stake and hostile bid GameStop now owns nearly 10% of eBay and is pushing a $125-per-share hostile bid. This creates uncertainty for eBay's board and shareholders, as a proxy fight or tender offer could disrupt management and distract from operations.

    This is the main source of uncertainty and potential downside for eBay's stock.

  • UK C2C experiment drives 52% stock surge eBay's UK experiment eliminating selling fees for casual sellers led to double-digit growth in consumer-to-consumer sales. This validates eBay's turnaround strategy and shows it can grow profitably, boosting investor confidence.

    This is a major positive catalyst that directly supports eBay's standalone growth story.

  • UK regulator clears $1.2B Depop acquisition The UK competition watchdog approved eBay's purchase of fashion resale platform Depop. This removes a regulatory hurdle and supports eBay's strategy to attract younger shoppers and strengthen its resale fashion business.

    This is a new positive development that advances eBay's growth strategy.

  • Analyst skeptical on GameStop bid, sees eBay reasonably valued Wedbush doubts GameStop's bid will succeed due to a financing gap, noting eBay trades below the offer price. The analyst views eBay as reasonably valued on its own but warns of downside if GameStop walks away.

    This provides a balanced view on the takeover situation and eBay's standalone value.

MercadoLibre Inc. (MELI)

Q3 2026
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MELI Q3: Strong Growth, Profit Squeeze, Legal Cloud

  • Revenue Growth Accelerates Q2 revenue jumped 50% to $10.2 billion, the fastest in four years, as Brazil free shipping lifted items sold 56% and Mercado Pago grew to 88 million users.

    Shows the core business is expanding rapidly, a key positive driver for the stock.

  • Analysts Stay Bullish BofA maintained a Buy rating and Scotiabank set a $2,800 target, while AI and advertising became profit drivers, with ad revenue up 62%.

    Highlights external confidence and new profit sources that support the stock.

  • Profit Pressured by Credit Losses Profit fell 20% as credit-loss provisions doubled to $1.24 billion; operating margin narrowed to 6.7% from 12.2%, and first-half net income dropped 13%.

    Directly explains the earnings decline that weighs on the stock price.

  • Securities Investigation Adds Uncertainty A securities investigation adds legal uncertainty, compounding pressure on the stock as the company trades near-term profitability for scale.

    Introduces a new legal risk that could affect investor sentiment and valuation.

September 2026
▲3▼1

MELI spends heavily on growth, shipping, credit and AI as profit margins shrink

  • Profit margins squeezed by growth spending Operating income fell to $683 million from $825 million and margin narrowed to 6.7% from 12.2%, with first-half net income down 13% even as revenue jumped 50%. The company is deliberately trading near-term profit for scale, which pressures the stock.

    This is the main counterweight explaining why the stock sits well below its high despite strong growth.

  • Free shipping and buyer growth fuel Brazil Lowering the free-shipping threshold in Brazil lifted items sold 56% and FX-neutral GMV 39%, with items per buyer up 19% and more shoppers buying across categories. Stronger engagement supports future revenue and keeps MELI ahead of Amazon and Sea Limited.

    It shows the demand engine behind the growth that justifies the spending.

  • Mercado Pago fintech and credit surge Mercado Pago's monthly users rose 30% to 88 million, payment volume jumped 56% to $101 billion, and the credit book grew 75% to $16.4 billion with low bad-loan levels. This adds a fast-growing profit source beyond retail.

    Fintech is a major second growth engine that supports the bull case.

  • AI and advertising become real profit drivers AI spending of about $80 million drove 110% more code submissions and lower development costs, while advertising revenue jumped 62% and topped 10% of Latin America's digital ad market. These higher-margin businesses improve future profitability.

    It shows new, higher-margin revenue streams that can offset the profit drag from shipping and credit.

Latest
▲3▼1

MELI spends heavily on growth, shipping, credit and AI as profit margins shrink

  • Profit margins squeezed by growth spending Operating income fell to $683 million from $825 million and margin narrowed to 6.7% from 12.2%, with first-half net income down 13% even as revenue jumped 50%. The company is deliberately trading near-term profit for scale, which pressures the stock.

    This is the main counterweight explaining why the stock sits well below its high despite strong growth.

  • Free shipping and buyer growth fuel Brazil Lowering the free-shipping threshold in Brazil lifted items sold 56% and FX-neutral GMV 39%, with items per buyer up 19% and more shoppers buying across categories. Stronger engagement supports future revenue and keeps MELI ahead of Amazon and Sea Limited.

    It shows the demand engine behind the growth that justifies the spending.

  • Mercado Pago fintech and credit surge Mercado Pago's monthly users rose 30% to 88 million, payment volume jumped 56% to $101 billion, and the credit book grew 75% to $16.4 billion with low bad-loan levels. This adds a fast-growing profit source beyond retail.

    Fintech is a major second growth engine that supports the bull case.

  • AI and advertising become real profit drivers AI spending of about $80 million drove 110% more code submissions and lower development costs, while advertising revenue jumped 62% and topped 10% of Latin America's digital ad market. These higher-margin businesses improve future profitability.

    It shows new, higher-margin revenue streams that can offset the profit drag from shipping and credit.

July 2026
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MELI Q2 revenue surges 50% but margins and legal probe weigh

  • Q2 revenue accelerates 50% MercadoLibre's second-quarter revenue jumped 50% to $10.2 billion, the fastest growth in four years, as both commerce and fintech businesses sped up. This shows the company is still winning customers and expanding rapidly.

    This is the main new positive development for the period, showing strong top-line momentum.

  • Analysts see big upside BofA kept a Buy rating, noting the credit card portfolio doubled to $6.6 billion and should break even by 2028. Scotiabank set a $2,800 target, implying 55% upside, and sees revenue hitting $50 billion by 2027.

    Analyst upgrades and price targets are new and can influence investor sentiment and the stock price.

  • Profit falls 20% on credit losses Operating margin dropped to 6.7% and profit fell 20% as credit loss provisions doubled to $1.24 billion. Longer loan terms and riskier borrowers are squeezing earnings, making investors cautious about future profitability.

    This is a key negative factor that directly pressures the stock and reflects ongoing margin challenges.

  • Securities investigation adds uncertainty Law firm Kirby McInerney is investigating possible securities law violations at MercadoLibre. While details are scarce, the probe creates legal uncertainty that could weigh on the stock and distract management.

    This is a new legal risk that could affect investor confidence and the stock price.

▲3▼1

MELI Q2 Revenue Tops $10B, But Margin Squeeze Persists

  • Q2 Revenue Surges Past $10 Billion MercadoLibre's Q2 2026 net revenue jumped 50% to $10.2 billion, the fastest growth in four years, with strong gains in commerce and fintech. This shows the core business is accelerating, which supports a higher stock price as investors gain confidence in future earnings.

    This is the period's biggest new positive event, directly driving revenue expectations and investor sentiment.

  • Fulfillment Network Widens Competitive Moat MercadoLibre's logistics network now handles 55% of shipments, with same- and next-day deliveries up 39% and shipping costs in Brazil down 17%. This efficiency strengthens its edge over rivals and supports long-term profitability, which can lift the stock.

    It highlights a structural advantage that improves cost and customer experience, key for future margins.

  • Analyst Sees 55% Upside Despite Margin Drop Scotiabank maintained a Sector Outperform rating and a Street-high $2,800 price target, implying 55% upside. Most analysts still rate the stock a Buy, arguing the margin decline is a deliberate investment cycle that will reverse, which can boost investor confidence.

    Analyst optimism provides a counterweight to margin fears and signals potential upside.

  • Margin Compression and Credit Provisions Weigh Operating margin fell to 6.7% and profit dropped 20% as credit loss provisions doubled to $1.24 billion. The company extended loan terms and entered riskier segments, raising concerns about credit quality and near-term profitability, which pressures the stock.

    This is the main negative force, explaining why the stock remains under pressure despite strong revenue.

▲2▼1

MELI: Growth Strong but Margin and Legal Worries Weigh

  • BofA Backs Credit Card Growth Bank of America reaffirmed its Buy rating, noting the credit card portfolio doubled to $6.6 billion and should break even by 2028. This reassures investors that heavy credit spending will eventually pay off, supporting the stock.

    This analyst call directly addresses the credit-loss concern that has pressured MELI, offering a positive counterweight.

  • Securities Law Investigation Law firm Kirby McInerney is investigating MercadoLibre for possible securities law violations tied to its Q1 2026 disclosures on longer loan terms. No lawsuit yet, but the probe adds legal uncertainty and could keep investors cautious.

    This is a new legal risk that could weigh on the stock and is not in earlier reports.

  • Revenue on Track for $50B MELI is on pace to hit $50 billion in revenue by 2027, with Q1 revenue up 49% and Brazil active buyers up 32% after lowering free shipping thresholds. Strong demand and a low price-to-sales ratio make the growth story compelling.

    This highlights the strong demand and growth trajectory that underpin the bull case for MELI.

Q2 2026
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MELI: Brazil growth strong, but heavy spending and credit losses squeeze profits

  • First-party expansion squeezes margins MercadoLibre's push into selling its own inventory (first-party) grew 69% and cut gross margin by 300 basis points. This strategy wins market share but requires costly warehouses and logistics, delaying profit recovery and pressuring the stock.

    This is a core new reason for margin pressure and directly explains why profits are falling despite sales growth.

  • Credit losses surge as loan book grows Bad-loan provisions jumped to over $1.24 billion from $603 million a year earlier, as the credit portfolio grew 87%. Rising defaults could keep eating into earnings, making investors cautious about future profit targets.

    This is a major new negative force behind the profit miss and estimate cuts, not just old news.

  • Wall Street slashes profit estimates After a third profit miss in four quarters, analysts cut 2026 profit estimates by 28% and 2027 by 25%. Lower expectations weigh on the stock, though some see the 42x earnings multiple as a buying opportunity if margin pressure proves temporary.

    This shows the market's reaction to weak profits and is a key driver of the stock's decline.

  • Brazil growth accelerates with better logistics In Brazil, FX-neutral GMV rose 38% and items sold jumped 56%, while unit shipping costs fell 17%. Strong demand and efficiency gains could improve profitability and free up cash for reinvestment, offering a counterweight to margin worries.

    This is a new positive operational update that shows the core business is still growing strongly and becoming more efficient.

June 2026
▼3▲1

MELI: Brazil growth strong, but heavy spending and credit losses squeeze profits

  • First-party expansion squeezes margins MercadoLibre's push into selling its own inventory (first-party) grew 69% and cut gross margin by 300 basis points. This strategy wins market share but requires costly warehouses and logistics, delaying profit recovery and pressuring the stock.

    This is a core new reason for margin pressure and directly explains why profits are falling despite sales growth.

  • Credit losses surge as loan book grows Bad-loan provisions jumped to over $1.24 billion from $603 million a year earlier, as the credit portfolio grew 87%. Rising defaults could keep eating into earnings, making investors cautious about future profit targets.

    This is a major new negative force behind the profit miss and estimate cuts, not just old news.

  • Wall Street slashes profit estimates After a third profit miss in four quarters, analysts cut 2026 profit estimates by 28% and 2027 by 25%. Lower expectations weigh on the stock, though some see the 42x earnings multiple as a buying opportunity if margin pressure proves temporary.

    This shows the market's reaction to weak profits and is a key driver of the stock's decline.

  • Brazil growth accelerates with better logistics In Brazil, FX-neutral GMV rose 38% and items sold jumped 56%, while unit shipping costs fell 17%. Strong demand and efficiency gains could improve profitability and free up cash for reinvestment, offering a counterweight to margin worries.

    This is a new positive operational update that shows the core business is still growing strongly and becoming more efficient.

▼3▲1

MELI: Brazil growth strong, but heavy spending and credit losses squeeze profits

  • First-party expansion squeezes margins MercadoLibre's push into selling its own inventory (first-party) grew 69% and cut gross margin by 300 basis points. This strategy wins market share but requires costly warehouses and logistics, delaying profit recovery and pressuring the stock.

    This is a core new reason for margin pressure and directly explains why profits are falling despite sales growth.

  • Credit losses surge as loan book grows Bad-loan provisions jumped to over $1.24 billion from $603 million a year earlier, as the credit portfolio grew 87%. Rising defaults could keep eating into earnings, making investors cautious about future profit targets.

    This is a major new negative force behind the profit miss and estimate cuts, not just old news.

  • Wall Street slashes profit estimates After a third profit miss in four quarters, analysts cut 2026 profit estimates by 28% and 2027 by 25%. Lower expectations weigh on the stock, though some see the 42x earnings multiple as a buying opportunity if margin pressure proves temporary.

    This shows the market's reaction to weak profits and is a key driver of the stock's decline.

  • Brazil growth accelerates with better logistics In Brazil, FX-neutral GMV rose 38% and items sold jumped 56%, while unit shipping costs fell 17%. Strong demand and efficiency gains could improve profitability and free up cash for reinvestment, offering a counterweight to margin worries.

    This is a new positive operational update that shows the core business is still growing strongly and becoming more efficient.

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