eBay’s stock surged by nearly 10% on Wednesday, marking one of its most significant single-day gains in recent years. This jump increased the company’s market capitalization by approximately $3 billion, bringing it to a total of $33 billion.
The spike in eBay’s stock price wasn’t driven by a strong earnings report or a new product launch. Instead, it was the announcement of a new partnership with Facebook that caught investors’ attention.
Facebook’s parent company, Meta, revealed early Wednesday that its Facebook Marketplace platform would begin including product listings from eBay in the U.S., Germany, and France. This partnership allows Facebook Marketplace users to encounter eBay listings mixed alongside those from Facebook’s own marketplace sellers. However, buyers wishing to purchase from an eBay seller will still need to complete the transaction on eBay’s website, leaving Facebook’s platform.
Meta expressed optimism about the collaboration, stating, “This could benefit people using both platforms. eBay sellers will gain exposure to Facebook’s audience, while Marketplace users will be able to discover a broader array of listings from the eBay community.”
The partnership comes at a time when Meta is working to address a European Commission ruling in November, which imposed a nearly 800 million euro fine on Facebook. The fine was related to allegations that Facebook had violated EU antitrust laws by bundling its Marketplace feature with its social media service, thus unfairly disadvantaging other online classified ads providers. While Meta disagrees with the ruling and is appealing, the company emphasized that it is “working quickly and constructively” to resolve the matter, with eBay playing a role in the solution.
For eBay and its community of sellers, this deal offers an opportunity to increase visibility. However, the specifics of how many eBay listings will appear on Facebook Marketplace and how frequently they will be featured remain unclear. According to eBay, the selection of products shown on Facebook will depend on factors like user interest, shopping trends, and listing quality. The company has noted that this could help attract new customers, as its active user base has remained relatively stagnant, hovering between 132 million and 134 million for the past two years. Despite generating $10 billion annually in revenue, eBay’s growth has lagged behind the broader U.S. e-commerce market.
“We’re always looking for new ways to increase exposure to our sellers’ listings, on and off eBay, as part of our strategy to engage buyers and deepen customer loyalty,” an eBay spokesperson said.
The new partnership with Meta represents a strategic move by eBay to tap into Facebook’s vast user base, potentially attracting more buyers and improving visibility for its marketplace in an increasingly competitive e-commerce landscape.
Related topic:
Tesla Shares Rebound, Key Price Levels to Watch
