eBay Climbs 5% as Morgan Stanley Names It Top Internet Pick on Live Commerce; Shopify Rises 3%, Etsy Ticks Up

Morgan Stanley (NYSE:MS | MS Price Prediction) named eBay (NASDAQ:EBAY) its top internet pick, saying that live streaming auctions have become a growth engine for the marketplace, and eBay stock is catching a bid. eBay shares are at $117.70, up 5% in midday trading. Heading into the note, eBay stock had gained 30% from the first trading day of 2026 through its most recent close.

Meanwhile, Shopify (NASDAQ:SHOP) stock is at $176.27, up 3%, a smaller gain than eBay stock’s advance. Additionally, Etsy (NASDAQ:ETSY) stock is at $77.93, up 2%, the smallest advance of the three. Both companies serve the same online shopping economy as eBay, though each makes its money in a different way.

Interestingly, online retail as a group is barely moving. The Amplify Online Retail ETF (NYSEARCA:IBUY) is at $68.97, up by just 0.2%. Across large caps, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is flat at $778.75.

Morgan Stanley Crowns eBay Its Top Internet Pick

Analyst Nathan Feather led the Morgan Stanley note, which raised the firm’s price target on eBay stock to $132 from $127. That note saying that live streaming auctions have changed how the platform trades. Feather described Western live shopping as a digital auction house for secondary and collectible goods, a format distinct from the influencer-led model common in Asia, and that structure raises the speed at which inventory turns over.

In the same note, Nathan Feather estimated that live commerce now drives more than 40% of eBay’s growth in gross merchandise volume (GMV), the total value of goods sold across the platform. Morgan Stanley also said operating profit expectations have likely bottomed after recent platform investments and acquisitions, including Depop. eBay closed its $1.4 billion purchase of the secondhand fashion app, which it acquired from Etsy, on July 30.

Live Auctions Set eBay Apart

On its Q2 2026 earnings call on August 5, eBay said GMV from eBay Live grew roughly 8x year over year and that it had recently moved the program to a self-service model to make seller onboarding easier. Chief executive Jamie Iannone also pointed to spillover into the core marketplace, stating, “When we look at buyers that start shopping in live, they’re spending 70% more than comparable buyers that are not shopping on live.”

Gains in Shopify stock and Etsy stock alongside a barely moving online retail fund point to an eBay-specific story with some read-across to its peers. eBay made up 2.4% of the ETF’s net assets as of June 30, with Etsy at 2.7% and Shopify at 0.8%, so gains in all three names carry limited weight inside the fund.

What to Watch Next

The next key question for eBay is whether live commerce volume shows up in the company’s own reported GMV. The company’s full-year outlook already lists eBay Live among the emerging growth vectors behind its GMV expansion. Shareholders can watch for whether eBay Live’s growth becomes visible enough in consolidated GMV to support the Morgan Stanley estimate.

Traders should watch for whether management details eBay Live at its next report; a vague disclosure would undercut the Morgan Stanley estimate. At 17x forward and 24x trailing earnings, eBay stock sits just below its 52-week high of $118.62, so investors sizing their positions should consider decline risk if live commerce slows.

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