eBay

eBay is cutting around 800 jobs, 6% of its workforce, to align with strategic priorities and bolster growth. This move follows significant investment in AI and a partnership with OpenAI. The e-commerce giant is also acquiring Depop for $1.2 billion to attract Gen Z and strengthen its position in the fashion market. These actions aim to enhance buyer/seller experiences and compete with rivals like Amazon and TikTok Shop, focusing on growth areas like collectibles and refurbished goods.

Stock futures suggest a cautious open as investors assess mixed corporate earnings and geopolitical factors. Walmart’s subdued outlook and rising oil prices are key concerns. Boeing saw a significant order surge, signaling a potential turnaround. Deere raised its profit forecast, driven by strong agricultural and construction demand. eBay’s acquisition of Depop and positive quarterly results boosted its stock. Analog Devices’ chips are vital for the growing data center market. American Airlines selected CFM engines for its new fleet. DoorDash’s international segment showed strength despite missed earnings. Dell is poised for upside due to AI demand, while Wayfair faces profitability challenges despite market share gains.

Etsy’s stock rose after selling its fashion resale app Depop to eBay for $1.2 billion, signaling a focus on its core marketplace. While Q4 earnings beat expectations, revenue and gross merchandise sales slightly missed targets, partly due to a prior divestiture. The Depop sale aims to streamline operations, while eBay enhances its presence in the growing fashion resale market. Etsy’s active seller base grew, though active buyers saw a minor dip. Future GMS guidance indicates a cautious outlook.

Etsy’s stock jumped over 14% after announcing the sale of its fashion resale subsidiary, Depop, to eBay for $1.2 billion. This move signals Etsy’s strategic shift to concentrate on its core marketplace, exiting its “house of brands” approach. The divestiture, following the sale of other niche platforms, comes amid increased competition and slowing growth for Etsy. For eBay, acquiring Depop strengthens its fashion segment and appeals to younger consumers, coinciding with eBay’s own positive Q4 earnings report.