eBay (EBAY) stock soared 6.54% in intraday trading, as investors responded positively to the company's announcement of a significant investment in circular fashion technology. The e-commerce giant revealed its decision to invest $300,000 in Refiberd, a startup developing cutting-edge AI systems for textile recycling, as part of its ongoing efforts to support sustainable fashion solutions.

Refiberd, crowned as eBay's Circular Fashion Innovator of the Year, has developed an AI system that can accurately identify fabric compositions, enabling more efficient sorting and recycling of textile waste. This investment, made through eBay Ventures, the company's venture capital arm, is expected to help Refiberd scale its operations and integrate its technology into existing recycling infrastructures. The move aligns with eBay's commitment to fostering innovation in the circular economy and addressing the fashion industry's waste challenges.

The investment in Refiberd is part of eBay's broader Circular Fashion Fund program, which aims to invest a total of $1.2 million by the end of 2025 to support startups scaling circular solutions in the fashion industry. This initiative, coupled with eBay's longstanding position as a leading marketplace for pre-loved fashion, underscores the company's dedication to driving sustainability in the fashion sector. The positive market reaction suggests that investors are optimistic about eBay's strategic focus on circular fashion and its potential for long-term growth in this area.