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eBay is a global online marketplace connecting millions of buyers and sellers across 190+ markets, offering auctions and fixed-price sales. Founded in 1995, it’s now a mature e-commerce platform focusing on categories like collectibles, refurbished goods, and AI tools for users.

Recently, eBay’s stock sold off despite beating Q3 earnings estimates, revenue hit about $2.82 B (vs. $2.73 B expected) and EPS was $1.36 (vs. $1.33 expected). The drop came after management issued weaker forward guidance, projecting slower GMV growth (4–6% for Q4) and ongoing margin pressures. Investors reacted negatively to signs of deceleration despite solid current results.

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From an Elliott Wave perspective, eBay appears to be in a strong and extended fifth wave advancing from the April lows, with the impulsive structure still looking incomplete. The recent sell-off following earnings may represent a deeper, higher-degree ABC correction within wave IV, particularly considering the presence of a newly opened and unfilled price gap.

The ideal support zone lies between 83–77, where the correction could potentially find a floor before resuming higher. We continue to anticipate a final push to new highs in wave V, likely extending beyond the 100 area. However, it’s important to note that once a five-wave sequence completes, markets often enter a slower, corrective phase, suggesting we may be approaching the late stages of the broader bullish cycle (red wave three) heading into year-end.

The Elliott Wave Principle is a form of technical analysis that identifies patterns in market movements. A bullish impulsive wave is one of the most important and common wave structures in an uptrend. It describes how prices typically move in the direction of the main trend. A bullish impulsive wave consists of five waves labeled 1, 2, 3, 4, 5. Basic Impulsive Bullish Pattern shows that eBay can be finishing wave 4 correction before a bullish continuation for wave 5.

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