01:03 PM EDT, 08/11/2026 (MT Newswires) -- EBay's ( EBAY ) acquisition of Depop is in line with its usual strategy that aims to recapture market share from competitors in vertical marketplaces, UBS said in a Tuesday note.

The Depop online marketplace for secondhand clothes is seen expanding eBay's ( EBAY ) access to younger shoppers, as well as boosts its consumer-to-consumer fashion and recommerce positioning, according to the note.

The company's Q3 guidance of gross merchandise value of 10% to 12% implies that its organic growth slows to a range of 7% to 9% from 14% in the previous quarter, UBS analysts said. With growth moderating from previous extraordinary levels, eBay's ( EBAY ) investment thesis returns to "blocking and tackling" with focus category expansion, which currently account for more than 70% of its total gross merchandise volume, the analysts said.

Even with the company expected to invest in Depop, eBay's ( EBAY ) full-year 2026 operating profit guidance still surpasses expectations, the analysts said.

UBS maintained the company's stock rating at neutral and raised the price target to $120 from $107.

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