EBay to Acquire Depop From Etsy for $1.2B

Why It Matters

Walmart's muted guidance signals a potential slowdown in big‑box retail spending, affecting sector investors. Etsy's high‑value sale highlights the accelerating consolidation of the online resale market and its strategic importance for e‑commerce platforms.

Key Takeaways

• Walmart shares down 3% premarket after weak guidance.
• Etsy jumps ~20% on $1.2B Depop sale to eBay.
• Oil prices rise above $66 per barrel amid Iran tensions.
• Depop transaction expected to close in Q2 2026.

Pulse Analysis

Walmart’s latest earnings report revealed solid fourth‑quarter performance, yet the company’s forward‑looking guidance fell short of analyst expectations. The retailer cited cautious consumer sentiment and inventory pressures, prompting a 3% pre‑market dip that nudged broader U.S. indices lower. Investors are now scrutinizing Walmart’s ability to sustain growth amid rising competition from omnichannel players and a tightening macro environment, where discretionary spending could be constrained by higher interest rates and lingering inflation.

Etsy’s dramatic rally stems from its strategic decision to sell Depop, a fast‑growing second‑hand apparel platform, to eBay for $1.2 billion. The transaction not only provides Etsy with a sizable cash infusion but also reflects the broader shift toward circular fashion and resale commerce, a segment that has outperformed traditional e‑commerce in recent quarters. For eBay, acquiring Depop accelerates its push into younger demographics and strengthens its foothold in the lucrative thrift‑shopping niche, positioning both companies to capitalize on sustained consumer appetite for sustainable, value‑driven shopping experiences.

The market backdrop is further complicated by geopolitical tension as oil prices breached $66 per barrel, driven by fears of a U.S. military move in Iran. Higher energy costs can erode disposable income, adding pressure on retailers like Walmart while simultaneously boosting demand for cost‑effective alternatives such as second‑hand goods. This confluence of retail earnings, strategic M&A activity, and macro‑risk underscores the importance for investors to monitor both sector‑specific dynamics and broader economic signals when assessing future performance.

Deal Summary

Etsy announced it will sell its second‑hand clothing app Depop to eBay for $1.2 billion, with the transaction expected to close in Q2. The news drove Etsy’s stock up about 20% pre‑market.