eBay’s stock surged nearly 10% on Wednesday, marking one of the company’s largest single-day increases in years. This rise added approximately $3 billion to eBay’s market value, boosting it to $33 billion.
eBay’s Stock Surge Linked to Facebook Partnership
The boost in eBay’s market value wasn’t due to a strong earnings report or a new product launch, but rather the announcement of a new partnership with Facebook.
Meta, the parent company of Facebook, revealed early Wednesday that Facebook Marketplace in the U.S., Germany, and France would begin featuring some listings from eBay. For Facebook Marketplace users, this means eBay product listings could appear alongside Marketplace listings. However, to complete a purchase from an eBay seller, users will still need to leave Facebook and finalize their transaction on the eBay website.
In a statement, Meta said, “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 range of listings from eBay’s community.”
A Response to EU Antitrust Concerns
Meta’s announcement also follows a decision by the European Commission last November, which imposed a nearly 800 million euro fine on Facebook for violating EU antitrust rules. The fine was related to Facebook’s practice of tying its online classified ads service, Facebook Marketplace, to its personal social network, creating unfair conditions for competing classified ads services.
Meta, while appealing the ruling, said, “We are working quickly and constructively to build a solution that addresses the points raised.”
Increased Visibility for eBay Sellers
For eBay, the partnership presents an opportunity to boost exposure for its sellers, though the specifics of the collaboration remain unclear. It’s not yet known how many eBay listings will appear on Facebook Marketplace or how often they will be featured.
eBay explained that it would choose which listings to display based on factors like user interest, shopping trends, and the quality of the listing. The company is aiming to attract more users, as its quarterly active user base has remained steady at around 132 million to 134 million for the past two years.
Although eBay generates approximately $10 billion in annual revenue, its growth has slowed in comparison to the overall e-commerce sector in the U.S.
eBay’s Strategy to Reach More Buyers
In a statement, eBay emphasized its commitment to increasing visibility for sellers, both on and off its platform. “We’re always looking for new ways to increase exposure to our sellers’ listings, as part of our strategy to engage buyers and strengthen customer loyalty,” the company said.
This partnership with Facebook marks a significant move for eBay as it seeks to expand its reach and adapt to the changing landscape of online retail.
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