Morgan Stanley’s ‘Top Internet Pick’ Crown Sparks Recent Momentum for eBay Stock

eBay Inc. (NASDAQ: EBAY) emerged as a standout in the e‑commerce sector this week after Morgan Stanley named it its “Top Internet Pick,” a move that helped lift the stock and underscore growing investor interest in the company’s live‑commerce strategy.

Morgan Stanley’s Bullish Call and Stock Reaction

On October 12, 2026, Morgan Stanley analyst Nathan Feather reiterated an Overweight rating on eBay, raising the price target from $127 to $132. Feather highlighted that live‑streaming auctions have become a significant growth engine for the platform, recently accounting for more than 40% of gross merchandise volume (GMV) growth. He also noted that operating profit expectations appear to have bottomed following recent investments and acquisitions, including the July 30 closing of the $1.4 billion Depop acquisition. In response, eBay shares jumped approximately 5% intraday. At that point, the stock had already gained around 30% year‑to‑date. This performance came amid a generally flat broader online‑retail ETF and S&P 500 environment, underlining the company-specific nature of the move. 

The Morgan Stanley note arrived during midday trading, with eBay shares trading near $117.70, up about 5%. The firm framed Western live commerce as a digital auction house for secondary and collectible goods—a format driving rapid inventory turnover and investor enthusiasm. 

Live Commerce: A Clear Growth Catalyst

Morgan Stanley emphasized that eBay Live’s GMV surged approximately eightfold year-over-year, and that shoppers engaging via live‑stream spend about 70% more than non-live buyers, according to comments cited from eBay CEO Jamie Iannone. These figures provided tangible proof points behind the bullish stance. 

This confirmation of live‑commerce’s impact adds to the strategic narrative on eBay’s reinvention, suggesting that the company’s pivot toward a more interactive, real-time shopping experience is resonating with both users and investors. 

Subsequent Movement and Media Response

Following the Morgan Stanley note, eBay shares climbed further. On October 16, 2026, in after-hours trading, the stock inched up 0.24% to $123.20, building on a 5.16% gain during the regular session. This uptick coincided with continued attention on eBay’s Recommerce Report for 2026, which offered consumer insights that bolstered interest in the company’s secondhand goods positioning. 

The stock has gained roughly 35% over the past 12 months, indicating sustained momentum beyond the recent catalyst. 

September Performance and Industry Trends

Looking back to September, eBay bucked broader e‑commerce sector trends by delivering a positive return. The Baird/Digital Commerce 360 Ecommerce Stock Index fell 8.1%, yet eBay posted a modest gain of about 2%, alongside other outperformers including Wayfair. The result indicates eBay’s relative resilience amid wider industry weakness, supported by continued healthy e‑commerce trends in North America and optimistic expectations for holiday spending. 

Investor Perspective and Upcoming Earnings

Amid these developments, stock sentiment has tilted bullish. A weekly investor report noted that eBay’s price stood at $112.19 as of October 9, 2026—about 5.4% above its trend line and within the upper range of its 52-week corridor. Options positioning remains skewed bullish, though news‑sentiment indicators were modest. Earnings are due in approximately 19 days, positioning investors to assess whether live commerce momentum and recommerce tailwinds hold through results. 

Why This Matters to Investors

The Morgan Stanley upgrade and accompanying stock rally reflect a tangible strategic shift gaining traction: eBay’s live‑commerce platform is increasingly central to its growth story. The sharp rise in live GMV and elevated shopper spend highlight the business model’s potential, especially when combined with dominance in secondhand and collectible goods. As the company nears its next earnings release, investors will watch closely for confirmation that these trends translate into sustained financial performance.

Looking ahead, key metrics to monitor include GMV breakdown by segment, margin trends following the Depop integration, and whether live‑commerce continues to deliver outsized value. These will help determine if Morgan Stanley’s optimism proves prescient.