Key Highlights

● eBay reported revenue growth and a strong margin.

● The company repurchased a large volume of shares.

● The gain came amid a mixed night for other software names.

● Amazon's results on Thursday will be a key follow-on catalyst.

eBay reported revenue growth, a strong margin and large share buybacks, and its stock climbed in extended trading on Wednesday, October 28.

eBay (NASDAQ:EBAY) found favor with traders after the bell. The online marketplace reported revenue growth, a strong margin and large share repurchases, and its stock rose in extended trading. The gain came after the regular session had closed, so it reflects after-hours trading; regular-session investors would get their chance to weigh in when markets opened Thursday.

Buybacks in the Spotlight

Share repurchases reduce the number of shares outstanding, which lifts earnings per share and returns cash to investors. For a mature company like eBay, which generates steady cash from fees on its marketplace, large buybacks have become a central part of the investment case.

The latest quarter delivered on that front, alongside revenue growth and a strong margin. Together, those elements signaled that the company is growing its top line while keeping costs under control and handing back a significant amount of capital to shareholders. Investors appeared to welcome the combination.

Part of a Busy After-Hours Tape

eBay was one of several notable movers after the close. Microsoft (NASDAQ:MSFT) climbed after reporting Microsoft Cloud revenue of $63.9 billion and accelerating growth in its Azure business. O'Reilly Automotive (NASDAQ:ORLY) and KLA (NASDAQ:KLAC) rose, and Chipotle (NYSE:CMG) and Carvana (NYSE:CVNA) gained.

On the other side, Alphabet (NASDAQ:GOOGL) slid sharply after missing earnings estimates and reporting negative free cash flow, ServiceNow (NYSE:NOW) tumbled and Fortinet (NASDAQ:FTNT) fell steeply. The split showed how carefully investors are sorting through results this season; about 200 S&P 500 companies have reported so far, and a large majority have beaten expectations, according to LSEG data, but beating estimates alone has not guaranteed a higher stock price.

A Modest Regular Session

Before eBay's report, the regular session ended with small gains. The Nasdaq-100 rose 161.72 points to 29,813.16, led by chip stocks; the Philadelphia Semiconductor Index posted its fourth straight gain. The S&P 500 added 21.38 points to 7,743.98, and the Dow Jones Industrial Average rose 97.53 points to 52,475.10.

The advance was narrow: the equal-weight S&P 500 slipped slightly, and trading volume of 16.67 billion shares was below the 20-day average of 17.10 billion. The Federal Reserve left its benchmark rate range unchanged in a 10-2 vote, and long-dated Treasury yields climbed while oil settled above $100 a barrel.

What to Watch

eBay's after-hours gain will be tested at Thursday's open. The advance estimate of third-quarter GDP and September personal income, spending and PCE inflation data arrive at 8:30 a.m. ET, offering a fresh look at consumer spending heading into the holidays.

Amazon (NASDAQ:AMZN), the biggest name in e-commerce, reports after the close, and its results could shape sentiment toward online retail more broadly. Apple (NASDAQ:AAPL) and Meta (NASDAQ:META) report later this week.