Morgan Stanley Named eBay Top Stock Pick
As eBay shares have gained 31% this year, analysts disagree on the future impact of the company's live commerce platform.
Updated on Oct. 12, 2026 in Stock Picks
Live Poll
Do you trust live commerce platforms like eBay Live to sustain long-term growth for your investments?
Morgan Stanley has raised its price target for eBay to $132, naming the company its top stock pick, while Wells Fargo has lowered its own target to $91. These conflicting analyst outlooks follow a period where eBay shares rose more than 31% year-to-date.
Why it matters
The split between major financial firms highlights the uncertain long-term impact of live commerce on eBay's bottom line. Investors are weighing growth from the company's platform against competitive pressures and high investment spending.
eBay saw its revenue rise 15% to $3.1 billion in the second quarter of 2026, with eBay Live driving 40% of the company's growth in gross merchandise volume. While shares have gained 31% year-to-date, analysts currently project third-quarter revenue of $3.10 billion.
The players
Morgan Stanley
A global financial services firm providing institutional investment research and brokerage services.
Wells Fargo
A major retail and commercial bank that also provides stock market analysis and equity research.
eBay
A multinational e-commerce company that facilitates consumer and business-to-consumer sales through its online marketplace.
The details
Morgan Stanley identifies eBay Live as a significant growth driver that could contribute four percentage points to annual gross merchandise volume growth through 2030. Conversely, Wells Fargo maintains an Underweight rating, citing high investment spending and competition as risks that could keep fiscal 2027 earnings per share 8% below consensus estimates. Gross merchandise volume measures the total value of paid transactions on the marketplace, including shipping and taxes.
Timeline
August 5, 2026: eBay reported second-quarter 2026 results.
October 12, 2026: EBAY shares traded 1% higher in premarket trading.
Q3 2026: eBay is expected to report third-quarter results.
FY2026-2030: Projected contribution of eBay Live to annual GMV growth.
FY2027: Wells Fargo fiscal EPS estimate timeframe.
Money Landscape
The U.S. live commerce market has expanded to $27 billion over the past two years, becoming a central point of contention for market analysts. This shift follows a period where eBay has sought to differentiate its marketplace through the eBay Live platform.
Investors should note that analyst price targets are professional projections and do not guarantee future stock performance. Before making decisions regarding your portfolio, discuss your financial goals and risk tolerance with a qualified financial or tax professional.
The takeaway
The divergence in outlooks between Morgan Stanley and Wells Fargo highlights the risks inherent in betting on emerging shopping trends. Keep an eye on the company's upcoming third-quarter earnings report for further signals on whether live commerce is successfully offsetting competitive pressures.
Further reading
For more on how institutional analysts evaluate market performance, visit the Stock Picks section.
Live Poll
Do you trust live commerce platforms like eBay Live to sustain long-term growth for your investments?
