eBay Inc

GameStop Corp. reported second-quarter net income of $298.7 million, up from $168.6 million a year earlier, even as revenue fell to $790.2 million from $972.2 million, according to a Wall Street Journal report on September 8, 2026. The video-game retailer raised its full-year adjusted EBITDA outlook to more than $650 million from a prior target of more than $600 million. Collectibles revenue jumped 57% year over year to about $356.3 million, now representing 45.1% of total sales and helping push gross margin to 43.7% from 29.1% a year earlier. Adjusted EBITDA rose to roughly $174 million from $75.7 million, and operating income reached $160.2 million, the highest for any second quarter in company history. The quarter's net income was boosted by approximately $238 million in net gains related to GameStop's equity stake in eBay, while a roughly $75 million loss on digital assets and related receivables showed the swing from its investment portfolio. Video-game revenue fell to about $263.2 million from $494.6 million a year earlier, and the company retired approximately $1.4 billion of convertible notes, reducing long-term debt to about $2.8 billion.

GameStop announced it has amended agreements with certain noteholders to exchange and cancel about $1.40 billion of its convertible notes due 2030 and 2032, a move that retires significant debt while increasing share dilution. Under the revised terms, noteholders will receive approximately 55.5 million GameStop shares and $358.40 million in cash, funded from existing cash reserves, instead of the original all-stock settlement. The company, which has a market capitalization of $8.25 billion, reported a 14% year-over-year revenue increase to $835.30 million for the quarter ended May 2, driven by a 65% surge in collectibles revenue to $348.90 million, now its largest segment. Net income soared 769.6% to $389.60 million, boosted by $268.40 million in unrealized gains on derivative assets tied to eBay. For the second quarter ended Aug. 1, GameStop expects net sales between $780 million and $800 million, down from $972.20 million a year earlier, but projects operating income of $150 million to $170 million and net income of $290 million to $310 million, including about $238 million in gains from its eBay investment. The company also converted its eBay derivative position into a direct stake of approximately 43.4 million shares, valued at about $4.95 billion, as of Aug. 1.

GameStop shares rose after the company released preliminary second-quarter results showing profits well above expectations, driven by a conversion of its derivative position in eBay into shares. The gaming retailer expects profits between $290 million and $310 million, up from $168 million a year ago, with the eBay conversion alone booking $238 million. GameStop now holds more than 43 million eBay shares worth nearly $5 billion. However, net sales are expected to decline to $780 million to $800 million from $972 million last year, and the company also anticipates a loss on its crypto holdings. The preliminary results were announced alongside an amendment to its $1.4 billion debt-for-stock swap, which fixes the share count. Final results are due on September 8th.

GameStop shares climbed 4% to $18.52 after the company amended its convertible note exchange to fix the total share count and pay part of the consideration in cash, eliminating the dilution overhang. The revised terms give noteholders roughly 55.5 million shares, or 73% of the consideration, and about $358.4 million in cash, or 27%, with no additional shares issuable. The exchange covers approximately $1.4 billion aggregate principal of 0.00% convertible senior notes due 2030 and 2032, and after closing, about $2.8 billion of notes will remain outstanding. GameStop also released preliminary Q2 results showing net income between $290 million and $310 million, boosted by a roughly $238 million gain on its eBay stake, despite net sales falling 20% year over year to $780-$800 million. Meanwhile, Roblox slipped 1% to $38.12, and Take-Two Interactive edged up 0.1% to $235.63 ahead of the Grand Theft Auto VI launch.

eBay has appointed Renee Paradise as global general manager of fashion to lead its worldwide fashion business. The role covers both luxury and non-luxury fashion categories as eBay looks to build out its broader fashion offering. Paradise is expected to work closely with Depop to deepen collaboration and reach more younger, fashion-focused shoppers.

eBay reported second-quarter 2026 results that exceeded consensus expectations, with gross merchandise volume growing 14% year over year to $22.4 billion and revenue also up 14% to $3.13 billion. Non-GAAP operating income rose 16% to $893 million, and non-GAAP earnings per share increased 17% to $1.60. The company completed its acquisition of Depop for $1.4 billion in cash, reflecting the purchase price of $1.2 billion and approximately $200 million of net purchase price adjustments. Strategic priorities including focused categories, consumer-to-consumer, and recommerce each grew over 20% and now represent more than 70% of total GMV. eBay raised its full-year GMV growth outlook to between 11.5% and 12.5% on an FX-neutral basis, while expecting Depop to be roughly a 2-percentage-point headwind to consolidated non-GAAP operating income growth.

Etsy reported second-quarter 2026 revenue that exceeded expectations, announced job cuts, sold its Depop subsidiary to eBay, and authorized a new US$2 billion share repurchase program. The stock has risen 38.8% year to date, with a one-year total shareholder return of 19.5%, though the five-year return remains materially lower. Etsy closed at $79.48, slightly above a widely followed fair value estimate of $76.33, while a Simply Wall St discounted cash flow model suggests a fair value of $156.94 per share. The company faces ongoing pressure from higher marketing spend and softer buyer metrics that could challenge growth and margin assumptions.

eBay is making a bigger push into live shopping after seeing record results. During its second-quarter earnings call, the company said eBay Live's gross merchandise volume jumped about 8 times year-over-year across seven markets, with increases in viewers, watch time, and items sold. Over 90% of sellers who stream regularly have seen their GMV grow, and those who use Live sell about three times more than those who don't. First-time shoppers in the collectibles category spend around 70% more than non-Live counterparts. eBay plans to expand Live to more international markets and recently moved to self-service onboarding for eligible sellers in over 300 categories.

eBay, the major U.S. e-commerce company, issued a third-quarter revenue outlook of 3.07 billion to 3.12 billion dollars, exceeding the average analyst estimate of 2.97 billion dollars compiled by LSEG. The company is benefiting from efforts to attract customers purchasing high-value items by strengthening its authenticated luxury goods, collectibles, and refurbished products businesses. In its second-quarter results, gross merchandise volume rose 15 percent year-on-year to 22.4 billion dollars, and revenue came in at 3.13 billion dollars, beating the market forecast of 3.02 billion dollars.

Etsy has completed the sale of its fashion resale marketplace Depop to eBay for approximately $1.4 billion in cash. The purchase price was $1.2 billion plus $200 million of net purchase price adjustments and interest, with net cash proceeds subject to further post-closing adjustments. Etsy plans to use the proceeds for general corporate purposes, including accelerating its share repurchase program as outlined in its April 29th Shareholder Letter. CEO Kruti Patel Goyal said the divestiture allows Etsy to focus exclusively on driving sustainable long-term growth for the Etsy marketplace.

The UK Competition and Markets Authority has cleared eBay's acquisition of Depop from Etsy. The approval allows Etsy to proceed with the divestment of the fashion resale app, narrowing its focus back to its core marketplace for unique and handcrafted goods. The decision signals a shift in Etsy's business mix and raises questions about how the company will deploy the sale proceeds, including potential reinvestment, debt reduction, or shareholder returns. Etsy's stock recently showed a 30-day return of 15.5% amid the Depop clearance news.

Etsy plans to release its second quarter 2026 financial results after the market closes on Wednesday, August 5, 2026. The company will host a webcast conference call to discuss those results at 8:30 a.m. Eastern Time on Thursday, August 6, 2026, which will be live-streamed via its Investor Relations website. A replay of the webcast will be available starting at 12:00 p.m. Eastern Time that day for at least three months. Etsy also noted that its pending sale of Depop to eBay is now expected to close on July 30, 2026, subject to regulatory approval and other closing conditions.

eBay has expanded its eBay Live livestream shopping platform into the eBay Partner Network affiliate program and invested in AI-powered secondhand fashion startup Fleek. These moves deepen eBay's focus on interactive commerce and recommerce technology, blending social-style shopping with AI-driven resale infrastructure. Fleek's AI engine for grading and pricing secondhand apparel complements eBay's push into authenticated fashion and higher-value resale. The initiatives aim to sustain gross merchandise volume and engagement in collectibles and fashion, though the investment narrative remains balanced by risks such as volatile demand in enthusiast categories and growing competition for younger shoppers.

eBay’s stock surged 52% after a successful U.K. experiment that proved its consumer-to-consumer turnaround strategy could drive profitable growth. In late 2024, eBay eliminated most selling fees for casual sellers in the U.K., leading to a double-digit improvement in C2C gross merchandise volume growth versus the pre-launch baseline, which management said outperformed internal expectations. By April 2025, the company confirmed that even after introducing a buyer-facing fee and managed shipping, C2C GMV growth and other key performance indicators remained significantly higher than pre-launch levels, validating the monetization model. Despite these positive signals, options market implied volatility hovered around the 52nd percentile of its one-year range, indicating traders were not pricing in a breakout before the surge occurred.

GameStop stockholders approved all proposals at the 2026 Annual Meeting, including an amendment to increase authorized Class A common stock. The amendment passed with 68.7% of votes cast, providing capacity to issue shares for strategic transactions such as the proposed acquisition of eBay. Stockholders also re-elected all five director nominees, approved executive compensation on an advisory basis, and ratified the appointment of the independent auditor. Final voting results will be filed with the SEC on Form 8-K.

GameStop is pursuing a potential acquisition of eBay after an initial rejection, signaling continued interest in expanding beyond its core video game retail business. CEO Ryan Cohen has withdrawn a controversial performance award to emphasize alignment with shareholders and reduce distractions during ongoing talks. The company has raised its financial targets as it renews its push around this potential deal. The stock closed at $22.82, with the share price up 4.9% over the past week and 10.7% year to date, while the 1-year return declined 2.1% and the 5-year return declined 51.7%.