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eBay (EBAY) to Lure Trading Cards Lovers With TCGplayer Buyout

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eBay (EBAY - Free Report) has entered into an agreement to take over TCGplayer, a marketplace for collectible card game enthusiasts.

TCGplayer is a well-known technology platform that builds applications, inventory management tools and hardware to connect collectible sellers and buyers worldwide. Through the TCGplayer Marketplace and Authentication Center, TCGplayer caters to the needs of millions of enthusiasts in the collectible industry.

We believe, the growing marketplace and robust technology of TCGplayer are likely to aid eBay in gaining traction from the collectible card lovers.

The acquisition of TCGplayer will expand EBAY’s portfolio of collectible offerings, which in turn, will help eBay gain momentum among the millennials and the Gen-Z collectors. This will drive eBay’s top line in the days ahead.

Evidently, eBay will gain investor confidence in the near and the long term.

Shares of EBAY have lost 31.7% in the year-to-date period, lagging the Zacks Retail-Wholesale sector’s decline of 17.2%.

eBay Inc. Price and Consensus

eBay Inc. Price and Consensus

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

Recent Initiatives Into Collectibles

Apart from the recent agreement to buy TCGplayer, eBay acquired the UK-based KnownOrigin in June. KnownOrigin is equipped with robust technology, enabling creators to make authentic digital collectibles in the form of NFTs. Its technology helped it attract a significant number of artistes and collectors to its platform, which remains positive for eBay.

Additionally, 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-grade trading cards. With the eBay vault, collectible enthusiasts can seamlessly and securely manage and trade their portfolio of collections.

In May, 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 booming trading cards market. growth of which is attributed to technological advancements and urbanization.

eBay’s strong endeavors are also helping it expand its presence in 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 growing efforts make EBAY well-poised to capitalize on the growth prospects present in the flourishing collectibles market, which is witnessing a 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.

Zacks Rank & Stocks to Consider

Currently, eBay carries a Zacks Rank #3 (Hold). Investors interested in the retail-wholesale sector can consider companies like Insight Enterprises (NSIT - Free Report) ,Arcos Dorados (ARCO - Free Report) and Dollar Tree (DLTR - Free Report) . While Insight Enterprises sports a Zacks Rank #1 (Strong Buy), Arcos Dorados and Dollar Tree carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here.

Insight Enterprises has lost 11.1% in the year-to-date period. The long-term earnings growth rate for the NSITstock is currently projected at 12%.

Arcos Dorados has gained 27.2% in the year-to-date period. The long-term earnings growth rate for the ARCOstock is currently projected at 34.4%.

Dollar Tree has returned 19.1% in the year-to-date period. The long-term earnings growth rate for the DLTRstock is currently projected at 15.5%.


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