Back to top

Image: Bigstock

eBay (EBAY) Unites With Service Providers to Expand Offerings

Read MoreHide Full Article

eBay Inc. (EBAY - Free Report) is a well-established player in the e-commerce space that has been expanding its services offerings to meet the needs of shoppers.

eBay recently joined forces with leading service providers, namely Handy, Porch and InstallerNet, to offer installation services to its shoppers.

On purchasing any item from eBay’s Marketplaces, the shopper has the facility to add an installation service from the most appropriate provider, as part of the checkout process.

The latest move will aid the company in expanding business in the e-commerce market and strengthening its client base on a global basis.

We believe that the availability of enhanced services will attract customers to the platform, driving eBay’s sales. Further, the possibility of seizing the market share aggravates with the increase in the services offered.

Investors will surely keep an eye on moves like this to see whether they can boost eBay’s stock that has underperformed the industry on a year-to-date basis. It has lost 23.2% against the industry’s growth of 3.3% in the said period.

 

 

Expanded Services to Aid Holiday Sales

E-commerce has been driving holiday sales over the last few years, with an increasing number of consumers preferring to shop online. With the holiday season approaching, online sales are once again expected to dominate the retail space.

The company’s strong focus on strategic partnerships should continue to benefit its market position and uplift holiday sales. In addition, this is likely to provide the company an edge over Amazon (AMZN - Free Report) and Alibaba (BABA - Free Report) in the e-commerce space.

Bottom Line

eBay is one of the world's largest online trading communities with a powerful marketplace for the sale of goods and services by individuals, as well as small businesses. The company enables trade on a local, national as well as international basis, with local sites in numerous markets in the United States, along with country-specific sites in the United Kingdom, Canada, Germany, Austria, France, Italy, Japan, Korea and Australia.

eBay is making all efforts to improve the Marketplace business. It is currently re-platforming itself by building product catalogs on structured data, enhancing mobile platform, rolling out new browse-inspired shopping journeys and strengthening its brand.

The latest deal will likely enhance eBay’s offerings, which already has 1 billion plus listings and 177 million active buyers worldwide.

However, intensifying competition in the e-Commerce space as well as foreign exchange headwinds remain major concerns for the stock.

eBay Inc. Price and Consensus

 

eBay Inc. Price and Consensus | eBay Inc. Quote

Zacks Rank & A Stock to Consider

Currently, eBay carries a Zacks Rank #3 (Hold). A better-ranked stock in the technology sector is boohoo group plc (BHOOY - Free Report) , which carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Long-term earnings growth rate for boohoo group is currently pegged at 25%.

The Hottest Tech Mega-Trend of All                 

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>

Published in