Social media giant Meta Platforms (META) is testing a feature that integrates listings from e-commerce platform eBay (EBAY) into its Facebook Marketplace in Germany, France, and the U.S. This would allow users to view eBay items directly on Marketplace but complete transactions through eBay’s platform. As a result, shares of Meta are down while eBay shares are soaring at the time of writing.
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The move is seen as Meta’s response to an €800 million ($824 million) fine by the European Commission last November, which accused Meta of anti-competitive practices by bundling Marketplace with Facebook and using ad-related data unfairly. Although Meta is appealing the decision, it stated that it wants to address the regulatory concerns in a way that benefits users on both platforms.
The partnership is expected to give eBay a competitive boost as it continues to battle with e-commerce giants like Amazon (AMZN) and Walmart (WMT). By expanding the visibility of its listings through Facebook Marketplace, eBay hopes to attract more buyers and improve seller exposure. The company has also focused on niche categories like collectibles and luxury goods in order to differentiate itself and retain users.
Not Meta’s First Collaboration
This isn’t Meta’s first collaboration aimed at expanding Marketplace offerings. Indeed, last year, it partnered with Amazon to allow users to browse and shop without leaving the Facebook app. The European Commission, however, continues to scrutinize Meta’s market influence due to concerns about how Marketplace’s integration into Facebook limits competition in the online classified ads space.
Is eBay a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on EBAY stock based on 10 Buys, 12 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 66% rally in its share price over the past year, the average EBAY price target of $64.36 per share implies 6.4% downside risk.
