On May 4, eBay rose 11.44% pre-market, trading at approximately $114.15 per share, with trading volume of $1.31 million. The surge was driven by a confluence of positive catalysts including a blockbuster acquisition proposal and strong quarterly results.
On the deal front, GameStop CEO Ryan Cohen has proposed acquiring eBay for approximately $56 billion, offering $125 per share in a cash-and-stock deal, representing a roughly 20% premium to eBay's prior closing price. GameStop has already accumulated approximately 5% of eBay's shares, and Cohen has indicated readiness to launch a proxy fight should eBay's board reject the proposal.
Simultaneously, eBay reported Q1 results that broadly exceeded expectations. Total revenue came in at $3.09 billion, up 19% year-over-year and above the consensus estimate of $3.04 billion. Adjusted earnings per share reached $1.66, topping the $1.58 forecast. Gross merchandise volume hit $22.2 billion, up 18%. For Q2, the company guided revenue of $2.97 billion to $3.03 billion, largely in line with expectations. Management highlighted resilience in collectibles, auto parts, and pre-owned goods, while ongoing AI tool deployment is expected to enhance platform engagement.
(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)
