The Collectibles Market Can Push eBay Stock Higher
Key Points
Collectibles are driving overall revenue growth for eBay, which has helped it outperform the S&P 500 and the Nasdaq Composite year to date.
New tools and features have boosted buyer trust and made it easier for sellers to offer collectibles at optimal price points.
Goldin has become a go-to platform for selling high-end collectibles, further expanding eBay's reach in the niche.
Pokémon cards, vinyl toys, and sports jerseys are some of the hot collectibles that have taken the internet by storm in recent years. Some people spend thousands of dollars on collectible items, while others watch from the sidelines, wondering how much money their old stuff could sell for.
eBay (NASDAQ: EBAY) has carved a large slice of the collectibles market for itself and looks poised to build on its position. A focus on collectibles is one reason eBay stock has outperformed the S&P 500 and the Nasdaq Composite year to date, a trend that may continue for the rest of 2026.
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Collectibles are driving eBay Live momentum
The international expansion of eBay Live is relatively new, but it has already translated into higher user engagement and rising sales. eBay Live is a livestreaming component of eBay that helps people find quality products, and sales of collectibles were a major growth driver.
eBay touted its "unique inventory of curated collectibles and memorabilia" when explaining how eBay Live impacted its business, with events like the World Cup attracting more shoppers. The livestreaming platform's gross merchandise volume grew eightfold year over year across its seven markets.
The end result for the second quarter was 15% year-over-year revenue growth. eBay also generated $552 million in net profit, a 51% increase. Collectibles are playing a role that should expand in future years. Grand View Research projects a 6.9% compound annual growth rate for the collectibles market through 2033.
The e-commerce company doesn't tell investors what fraction of its sales on its platform come from collectibles. However, collectibles are a part of eBay's "focus categories" segment, which exceeded 40% of gross merchandise volume for the first time in Q2. eBay cited "strength across collectibles, eBay Motors, Fashion, and Refurbished Goods" in that quarter's earnings presentation.
Empowering sellers to make smarter decisions with their rare items
Not only does eBay have a lead in the collectibles market, but it's also adding multiple features to preserve its advantage. Its authenticity guarantee was expanded to U.K. trading cards valued at above 500 British pounds. That move, along with the decision to broaden eligibility for its PSA grading option for U.S. trading cards, helps keep fake collectibles off the platform and boosts buyers' trust.
The company also introduced card ladder indexes that help sellers determine the fair value for specific players, characters, sports, and collectible card game genres over time. These tools can help sellers understand the optimal prices for what they own, preventing them from leaving money on the table. And the more that sellers can sell their collectibles for, the more that eBay collects in fees.
eBay also has a collectible segment called Goldin that has become the go-to space for record-setting sales. A Michael Jordan card sold for $4.3 million on the platform, and Wayne Gretzky's Stanley Cup-winning jersey sold for $2.8 million. Such high-figure transactions will make Goldin more attractive to collectors who want to sell high-end products.
The decision to lean into the collectibles market has been quite lucrative for eBay, and will continue to provide a multiyear tailwind that should benefit shareholders.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends eBay. The Motley Fool has a disclosure policy.