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Meta, eBay Collaboration Offers Win-Win Partnership, Morgan Stanley Says
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Meta, eBay Collaboration Offers Win-Win Partnership, Morgan Stanley Says
Jan 9, 2025 7:22 AM

10:09 AM EST, 01/09/2025 (MT Newswires) -- Meta (META) and eBay's ( EBAY ) collaboration on listings may be beneficial for the two companies if it is rolled out globally, with eBay ( EBAY ) potentially seeing an up to 9% contribution to its earnings before interest and taxes, Morgan Stanley said in a note emailed Thursday.

Meta said Wednesday that it will test placement of eBay ( EBAY ) listings on Facebook Marketplace in the US, France and Germany and allow users to complete the transactions on eBay ( EBAY ).

"If rolled out, this could prove to be a win-win partnership with eBay ( EBAY ) gaining incremental distribution while Meta better monetizes Marketplace," Morgan Stanley said in the note, as it outlined three scenarios showing a range of 0 to 9% lift to eBay's ( EBAY ) EBIT.

The investment firm cautioned, however, that "much is still unknown with sizing, adoption, [and] unit economics remaining a question."

The move seems to be part of Meta's initiatives to comply with an EU antitrust order, but the inclusion of the US also "implies it may have a wider reach," the note said.

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