What Happened?
Shares of online marketplace eBay (NASDAQ:EBAY) fell 3% in the afternoon session after the European Union announced a decision to introduce new customs duties on low-value e-commerce packages.
The decision by EU Member States introduced a new €3 customs duty per item on parcels valued below €150, which was set to start in July 2026. This measure was designed to help European businesses compete more effectively with online retailers. For a global marketplace like eBay, this new duty could affect its operations and competitiveness in the region. Adding to the pressure, the broader market also experienced a downturn, with the tech-heavy Nasdaq declining during the trading session.
The shares closed the day at $82.57, down 3.3% from previous close.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy eBay? Access our full analysis report here.
What Is The Market Telling Us
eBay’s shares are not very volatile and have only had 6 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 5 months ago when the stock gained 19.8% on the news that the company reported second-quarter results that significantly beat Wall Street's expectations and provided a strong outlook for the upcoming quarter.
The e-commerce company's revenue rose 6% to $2.73 billion, beating analysts' expectations. Adjusted profit also climbed to $1.37 per share, which was ahead of Wall Street's projections. The company attributed the strong performance to resilient marketplace activity and disciplined execution. Adding to the positive news, eBay provided an upbeat forecast for the third quarter, with expected revenue also exceeding consensus estimates. The company also noted its active buyer base grew to 134 million. The strong results and optimistic outlook sent the stock to a new all-time high and led several investment firms to raise their price targets.
eBay is up 32.6% since the beginning of the year, but at $82.57 per share, it is still trading 18.1% below its 52-week high of $100.77 from August 2025. Investors who bought $1,000 worth of eBay’s shares 5 years ago would now be looking at an investment worth $1,585.
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