Goldman Sachs upgraded eBay to Neutral from Sell following the company's stronger-than-expected fourth-quarter results. Analyst Eric Sheridan cited better-than-anticipated gross merchandise volume, revenue, and non-GAAP earnings, driven by momentum in focus categories and robust U.S. market performance.

Sheridan noted that earlier investments aimed at repositioning eBay for durable growth are now translating into solid operating momentum heading into 2026. The firm expects sustained positive revenue growth momentum over the next 12-18 months, supported by stable margins and consistent shareholder returns, including a new $2 billion share repurchase authorization.

The analyst raised the 12-month price target to $88 from $77, citing several positive factors from the quarter. U.S. GMV exceeded expectations, with emerging growth vectors like live commerce and vehicles contributing meaningfully. Focus categories rose 16% year over year, while cost discipline helped lift earnings guidance. However, international GMV was weaker due to European macro pressures, and trading-card growth slowed, a trend management expects to persist through 2026.