eBay Reports Q1 Earnings: Strong AI Fashion Initiatives Drive Growth
eBay’s Quarterly Performance Exceeds Expectations
eBay Inc. (NASDAQ: EBAY) shared its 2025 first-quarter results. The company earned $1.38 per share, beating analyst views of $1.34. Revenue reached $2.58 billion, just above the $2.55 billion forecast. Last year, this quarter brought in $2.56 billion. The boost comes as eBay works on AI in its fashion section.
Growing Gross Merchandise Volume (GMV)
eBay saw its gross merchandise volume grow by 2% in constant currency. Needham analyst Bernie McTernan pointed out that GMV rose more in March and April. He links this rise to a 6% jump in sales for current season products in key categories.
Analysts Offer Positive Outlook
After the news, experts spoke well of eBay’s run in the quarter. McTernan renewed his Buy rating on the shares and moved his target from $72 to $78. JP Morgan’s analyst Doug Anmuth kept a Neutral rating and raised his target from $54 to $60. BofA Securities stayed Neutral, setting a target at $71. Investments in AI and Fashion
eBay puts funds into AI and machine learning for its fashion work. The company added new features, like active fashion feeds, which improve the shopping feel in the U.S. and U.K. This step ties with the trend toward sustainable buying and the growing pull of pre-owned clothes.
Geographic Expansion and Financial Projections
In the U.K., eBay’s customer-driven programs—such as Managed Shipping and eBay Balance—went beyond expectations. Even with pressures from global issues and U.S. tariff doubts, eBay aims for low single-digit GMV growth in constant currency. Financial views for 2025 also rose, with adjusted EPS estimates bumping from $5.32 to $5.37. Market Reaction
On Thursday, eBay shares fell slightly. Trading at $67.92, stocks dropped by 0.35%. Investors now watch as eBay uses AI to boost customer service and drive sales.
Conclusion
eBay stays set on its AI work in fashion to meet new customer trends. Upgrades in ratings and steady expert views show trust in eBay’s steps for growth. As the company works on new ideas and widens its reach, investors will keep a close eye on its progress.
