Morgan Stanley outlines four potential scenarios for eBay's future
Morgan Stanley has outlined four possible paths forward for eBay as it faces increased competition from Vinted in its fashion resale app, Depop. Despite recent stock declines and concerns over rising marketing costs, the firm maintains a bullish stance on eBay’s long-term prospects. The analysis comes amid an ongoing takeover attempt by Ryan Cohen of GameStop, who has criticized eBay's spending habits without clear user growth benefits. Morgan Stanley argues that investors are mispricing the potential payoff from Depop's aggressive strategy against Vinted in the U.S., noting Vinted’s own success through similar tactics in Europe. The four scenarios range from an escalating arms race to a retreat by either competitor, with varying impacts on 2027 earnings and long-term market share. Morgan Stanley assigns higher probabilities to outcomes where eBay maintains or gains ground against its European rival.
Topics: Depop eBay GameStop Morgan Stanley Ryan Cohen Vinted