Morgan Stanley Picked eBay as Top Stock
The firm raised its price target for eBay as analysts remain divided on the company's growth trajectory.
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 named eBay its top stock pick, citing the growth of the company's live commerce platform. Conversely, Wells Fargo lowered its price target for the e-commerce giant, highlighting concerns over competition and investment spending.
Why it matters
The split between major analysts underscores the uncertain impact of eBay Live, which analysts believe could significantly influence future transaction volume. Investors are weighing these growth prospects against risks from competitors like Vinted and rising operational costs.
Morgan Stanley raised its eBay price target to $132, while Wells Fargo adjusted its target downward to $91. EBAY shares have gained over 31% year-to-date, with the firm reporting $22.4 billion in gross merchandise volume during the second quarter of 2026.
The players
Morgan Stanley
This is a global financial services firm that provides investment banking, securities, and wealth management services.
eBay
This is a multinational e-commerce corporation that facilitates consumer-to-consumer and business-to-consumer sales.
Wells Fargo
This is a major American financial services company offering banking, investment, and mortgage products.
Vinted
This is an online marketplace platform that allows users to buy, sell, and trade new or secondhand clothing and accessories.
The details
Morgan Stanley maintained an Overweight rating on eBay, identifying live commerce as a key driver that could contribute four percentage points to annual gross merchandise volume growth through 2030. Meanwhile, Wells Fargo maintained an Underweight rating, projecting fiscal 2027 earnings per share 8% below the current consensus.
Timeline
August 5, 2026: eBay reported its second-quarter 2026 financial results.
October 12, 2026: EBAY shares saw a 1% increase in premarket trading.
Q3 2026: The company is scheduled to report its third-quarter financial results.
FY2026-2030: The period during which eBay Live is projected to contribute to annual GMV growth.
FY2027: The fiscal year used for the current Wells Fargo earnings per share estimate.
Market Dynamics
eBay's recent focus on live commerce mirrors a broader industry pivot toward interactive shopping experiences designed to maintain market share. This strategic shift follows the expansion of the U.S. live commerce market, which has grown to $27 billion over the past two years.
Retail investors should note the divided analyst outlook, which suggests potential volatility in EBAY shares leading up to the third-quarter earnings report. Those holding the stock may see price fluctuations as the market reconciles conflicting targets between the two firms.
The takeaway
Investors should carefully monitor how eBay Live performance metrics influence upcoming quarterly earnings reports. Balancing the growth potential of new features against competitive pressures remains essential for long-term portfolio management.
Further reading
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Live Poll
Do you trust live commerce platforms like eBay Live to sustain long-term growth for your investments?
