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EBAY to Boost Collectibles Offering With Latest Agreement

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eBay (EBAY - Free Report) entered into a definitive agreement with Collectors, a leading provider of third-party trading card authentication and grading.

Per the terms of the agreement, eBay will acquire Collectors’ U.S.-based auction house for high-value trading cards and collectibles, Goldin, paving its way into the collectibles market. The deal further extends to the sale of the eBay vault to PSA, a subsidiary of Collectors.

Further, eBay and Collector will launch a new product for the collecting community in the upcoming months as a part of the deal.

This collaboration will enable eBay to leverage PSA's expertise in trading cards and collectibles to provide a simplified, personalized experience for collectors, inspiring more people to sell, shop, and collect items.

Additionally, eBay's acquisition of Goldin will expand inventory and attract new buyers, enhancing the collecting experience across various price points.

eBay is expected to gain solid traction among collectible enthusiasts, particularly in the United States, on the back of its upcoming partnership.

eBay Inc. Price and Consensus

eBay Inc. Price and Consensus

eBay Inc. price-consensus-chart | eBay Inc. Quote

Growing Focus in the Collectibles Market

Apart from the Collectors deal, eBay partnered with COMC, a sports trading card innovator, to strengthen its foothold in the collectibles market.

The deal, which includes eBay’s investment in COMC, aims to improve listing efficiency and support sellers and collectors who participate in the trading card hobby in the United States, The Hobby.

Additionally, the company’s launch of 'Collectors Camp' remains noteworthy.

The 'Collectors Camp' is a series of training events to build world-class card collections by offering expert insights, tools and strategies for collectible enthusiasts.

All the above-mentioned endeavors will enable eBay to capitalize on growth opportunities present in the collectibles market. Per a Market Decipher report, the global collectibles market is expected to reach $628 billion by 2031, exhibiting a CAGR of 6.2% between 2023 and 2031.

Strengthening Marketplace Portfolio

The latest move bodes well for eBay’s growing efforts toward strengthening its Marketplace business, which remains the key growth driver for the company. Its shares have gained 19% on a year-to-date basis, outperforming the Retail-Wholesale sector’s 12.4% growth.

Notably, the company recently unveiled a “shop the look” generative AI-powered feature within the iOS mobile app, offering personalized recommendations for customers.

This interactive feature suggests similar items and outfit inspirations based on customers’ shopping history, enabling fashionistas to shop preowned and luxury items that match their personal style.

Further, eBay launched a mobile consignment concierge, the Luxe Line, to offer a convenient selling experience, allowing visitors in Los Angeles and Las Vegas to directly access expert sellers listing and selling luxury items.

Strengthening Marketplace business will likely aid the company’s overall financial performance in the near term.

The Zacks Consensus Estimate for 2024 total revenues stands at $10.23 billion, indicating year-over-year growth of 1.2%.

Zacks Rank & Other Stocks to Consider

Currently, eBay carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the retail-wholesale sector are The Gap (GPS - Free Report) , DICK'S Sporting Goods (DKS - Free Report) and Fastenal (FAST - Free Report) . While GPS currently sports a Zacks Rank #1 (Strong Buy), DKS and FAST carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Gap has gained 27.3% in the year-to-date period. The long-term earnings growth rate for GPS is currently estimated at 12%.

DICK'S Sporting Goods shares have gained 41.2% in the year-to-date period. DKS’s long-term earnings growth rate is currently projected at 6.22%.

Fastenal has gained 17.8% in the year-to-date period. The long-term earnings growth rate for FAST is currently anticipated at 9%.

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