Onus remains on eBay to convert Facebook Marketplace users to buyes, says UBS

UBS analyst Kunal Madhukar keeps a Neutral rating and $66 price target on eBay (EBAY) after the company’s announcement that Facebook (META) Marketplace will take steps to test syndication of eBay listings. The firm’s investment conclusion is “more uncertain and nuanced”, in that while eBay is likely to see an increased stream of new and/or returning users given that Facebook Marketplace user base is about 8-times that of eBay’s 132M, but the onus remains on the company to convert them into “enthusiast buyers”, the analyst tells investors in a research note. For Meta, this could mark the beginnings of what may be more robust selection of merchandise, improved shopping experience, and a catalyst for a rise in user shopping behavior, the firm added.