eBay Stock Drops After Announcing a $295 Million Deal

eBay Stock

eBay stock (NASDAQ:EBAY) fell on Monday after it announced a $295 million acquisition of the card collector marketplace TCGplayer. eBay (NASDAQ:EBAY) said that the decision to buy the online marketplace was based on a business goal to attract “enthusiasts.” Additionally, eBay mentioned that it has recently made a lot of investments in the collectibles and trading card areas.

According to Dawn Block, vice president of collectibles at eBay, “by partnering with TCGplayer, eBay has even more options to link brick-and-mortar hobbyists and sellers with dedicated collectors around the world.” “Our two businesses are deeply committed to the collectibles community and share similar values.” Working together, we will continue to provide a best-in-class experience for our clients.

eBay stock price overview

Shares of the San Francisco-based e-commerce company fell nearly 1.7% shortly after the market opened on Monday, erasing a small gain to drop by roughly 0.9% in the first hour of trade. More about the transaction details here.  

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eBay banking on second-hand valuables

According to the FT, Jamie Iannone, the CEO of eBay, believes that the booming second-hand luxury market for items like trainers or watches will help turn around the online marketplace’s fortunes, Whether eBay is trying to attract Gen Z buyers who use TikTok or people who have a real enthusiasm for luxury “kicks,” both are important. We’re focusing on where millennials and members of Generation Z are, he said. “Re-commerce and sustainability are receiving more attention.

The CEO of eBay believes that going back to the company’s beginnings as a marketplace for secondhand goods and collectibles, with an emphasis on high-end resale, can help make up for a decade’s worth of lost position in the e-commerce industry. Following a brief e-commerce boom during the epidemic, the company’s market value dropped from a high of $53 billion last year to $21 billion today.

Its most recent earnings report, in August, showed that its sales fell from the same time last year for the fifth straight quarter. According to research firm Insider Intelligence, its market share in US e-commerce has decreased from 7.6% in 2016 to 3.5% this year. Iannone admitted that the fight against Amazon had been lost for a long time, but he said that the company still had a “right to succeed” in the markets most associated with the website, which began as an auction site in 1995.

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