eBay ( EBAY Quick Quote EBAY - Free Report) has taken over Manchester, UK-based KnownOrigin, a marketplace for non-fungible token (NFT).
KnownOrigin is equipped with advanced technology, enabling creators to make authentic digital collectibles in the form of NFTs. Its technology helped it attract a significant number of artists and collectors to its platform.
We believe the growing marketplace and robust technology of KnownOrigin are likely to aid eBay in gaining traction among the collectible enthusiasts further.
Moreover, eBay’s portfolio of collectible offerings has expanded with the latest buyout, which will help EBAY gain momentum among the millennials and the Gen Z artists and collectors.
Recent Initiatives Into Collectibles
The latest buyout of KnownOrigin bodes well for EBAY’s growing efforts in the collectibles space.
In addition to the recent acquisition, this month, eBay introduced the shopping platform eBay Live to allow people to browse and buy products in a live mode.
EBAY also unveiled the eBay vault, a digital marketplace for single and top-graded trading cards. With the eBay vault, collectible enthusiasts can seamlessly and securely manage and trade their portfolio of collections.
Last month, EBAY collaborated with OneOf, a green NFT company, to release a series of exclusive NFTs, thereby boosting its presence in the collectible domain.
Strategic Moves a Key Lever
The above-mentioned initiatives are helping eBay penetrate the NFT market, which is significantly growing in recent times owing to increasing demand for digital artworks and the growing usage of blockchain technology.
Per a Technavio report, the NFT market is expected to reach $147.24 billion by 2026, witnessing a CAGR of 35.3% between 2021 and 2026.
Moreover, these endeavours make EBAY well-poised to capitalize on the growth prospects present in the booming collectibles market which is witnessing rising online sale of antiques and collectibles.
According to a Market Decipher report, the global collectibles market is likely to touch $628 billion by 2031, seeing a CAGR of 6.2% during the 2021-2031 forecast period.
However, eBay faces stiff competition from its peer
Amazon ( AMZN Quick Quote AMZN - Free Report) , which is also making strong efforts to capitalize on the prospects in the collectible market.
Shares of EBAY have lost 35.1% in the year-to-date period, lagging the Zacks
Retail-Wholesale sector’s decline of 27.7%.
AMZN’s shares have been down 34.6% in the year-to-date period.
Amazon allows users to shop on its platform to purchase collectibles and artworks from a wide variety of prints and posters, figurines, clothing and uniforms, photographs and more.
Collectors can also access the Amazon platform to buy trading cards and memorabilia, including autographed photos, jerseys, balls, helmets, etc.
Zacks Rank & Stocks to Consider
Currently, eBay carries a Zacks Rank #4 (Sell).
Investors interested in the retail-wholesale sector can consider companies like
Arcos Dorados ( ARCO Quick Quote ARCO - Free Report) and AutoNation ( AN Quick Quote AN - Free Report) . While Arcos Dorados has a Zacks Rank #2 (Buy), AutoNation sports a Zacks Rank #1 (Strong Buy) at present. You can see . the complete list of today's Zacks #1 Rank stocks here
Arcos Dorados has gained 19% in the year-to-date period. The long-term earnings growth rate for the ARCOstock is currently projected at 34.4%.
AutoNation has lost 3.8% in the year-to-date period. The long-term earnings growth rate for the ANstock is currently projected at 24.7%.