TLDR
- eBay is buying Depop from Etsy for $1.2 billion in cash, deal expected to close Q2 2026.
- Depop hit $1 billion in gross merchandise sales in 2025, with ~60% U.S. growth year-over-year.
- eBay stock rose ~6.7% and Etsy stock surged ~16.9% after the announcement.
- eBay beat Q4 estimates: adjusted EPS of $1.41 vs. $1.35 expected; revenue $2.96B vs. $2.88B forecast.
- Etsy originally paid $1.62 billion for Depop in 2021, taking a loss on the sale.
eBay is acquiring secondhand fashion platform Depop from Etsy for $1.2 billion in cash. Both stocks moved sharply higher Wednesday following the announcement.
eBay shares climbed around 6.7% while Etsy stock surged roughly 16.9% in after-hours trading. Both boards unanimously approved the deal.
Depop is a London-based resale platform where buyers and sellers trade secondhand clothing. Nearly 90% of its 7 million active buyers are under 34, making it one of the more Gen Z-heavy platforms in the space.
The platform generated around $1 billion in gross merchandise sales in 2025, with close to 60% U.S. growth year-over-year. It has over 3 million active sellers and 56.3 million registered users.
Why eBay Wants Depop
For eBay, this is a play for a younger audience. CEO Jamie Iannone said Depop fits into the company’s fast-growing “recommerce” category and gives eBay direct access to Gen Z and Millennial shoppers it hasn’t been able to reach at scale.
Etsy is walking away from an investment it made at a higher price. The company paid $1.62 billion for Depop in 2021 as part of a broader “house of brands” push. That strategy has since been unwound, with Etsy also selling off Elo7 and Reverb in recent years.
CEO Kruti Patel Goyal framed the sale as a way to sharpen Etsy’s focus on its core marketplace, calling it “a great outcome for Etsy’s shareholders.”
eBay Q4 Earnings Beat Estimates
eBay also reported Q4 results Wednesday that topped Wall Street expectations on both lines.
Adjusted EPS came in at $1.41, ahead of the $1.35 estimate. Revenue hit $2.96 billion versus the $2.88 billion forecast — up 15% year-over-year.
Q1 guidance was also strong, with eBay projecting adjusted EPS of $1.53 to $1.59 and revenue of $3 billion to $3.05 billion, both ahead of analyst estimates.
What’s Next for Etsy
Etsy reports Q4 2025 earnings Thursday morning. Analysts are expecting EPS of $0.84, which would mark an 18.4% decline from the same quarter last year.
Wall Street holds a consensus Hold rating on Etsy stock, with an average price target of $61.58 — implying roughly 40% upside from recent levels.
The Depop transaction remains subject to regulatory approval, with both companies targeting a Q2 2026 close.
