Meta Platforms (META) said Wednesday it will test a feature in Germany, France and the U.S. that will enable Facebook Marketplace users to browse listings from eBay (EBAY) and complete transactions on the e-commerce site. EBay stock jumped in early trading Wednesday, while Meta stock was slightly lower, according to reports by investor.com
The change comes in response to regulatory scrutiny for Meta in Europe. In November, the European Commission fined Meta roughly $840 million for Facebook Marketplace policies that the regulators said broke competition laws. Meta announced the eBay agreement early Wednesday in an update to its initial blog post responding to the European Union fine.
“While we disagree with and continue to appeal the European Commission’s decision on Facebook Marketplace, we are working quickly and constructively to build a solution which addresses the points raised,” the Meta announcement said. “Today, we will launch a test in Germany, France, and the U.S. that will enable buyers to browse listings from eBay directly on Facebook Marketplace while completing their transaction on eBay. This could benefit people using both platforms.”
EBay also published a blog post Wednesday alerting sellers to the change. “We’re thrilled to announce that we’re adding Facebook Marketplace to the growing roster of channels where your listings can be found,” the company wrote.
On the stock market today, eBay stock is up more than 11% at 70.55 in morning trades. Meta stock was down a fraction.
EBay Stock Stronger In 2024
With its early gains Wednesday, eBay stock easily retook a 65.91 cup-with-handle buy point, according to MarketSurge. EBay broke out past that level on Dec. 9 before pulling back later that month.
Meanwhile, eBay stock gained more than 40% last year despite sales growth that remained in the low single digits for its past four quarterly reports. Adjusted earnings are projected to rise 14% for 2024, compared to 2% growth in 2023.
Analysts have responded positively to moves from the company to use generative AI to make it easier to create product listings. EBay also conducted a round of layoffs among other cost cutting early last year.
Overall, eBay stock has an IBD Composite Rating of 95 out of a best-possible 99. IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
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