Leading online marketplace eBay Inc. (NASDAQ:EBAY) recently revealed that the company has entered into an agreement to acquire TCGplayer for $295 million. TCGplayer is an online marketplace for collectible card game enthusiasts.
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The deal is expected to close in the first quarter of 2023.
TCGplayer’s Acquisition Complements eBay’s Strategy
The buyout is in line with eBay’s strategy to cater to trading card enthusiasts as the company sees considerable growth in the space. TCGplayer is a leading player in this category with a technology platform that develops applications, inventory management tools, and hardware like robotic sorting machines. Moreover, it connects thousands of hobby stores and online sellers with customers and collectors across the world.
Meanwhile, eBay has been making some moves recently in the card space and is fortifying its position. In June, the company launched its vault for trading cards along with a dedicated shopping platform for collectibles.
Additionally, in May, the company expanded its Authenticity Guarantee to include graded cards worth over $2,000. The company said that it would partner with Professional Sports Authenticator, a third-party company that inspects and grades cards.
Investors are Loading up on eBay Stock
eBay’s recent moves are convincing top investors about the company’s future growth and they are buying its stock.
TipRanks’ Stock Investors tool shows that top investors currently have a Very Positive stance on EBAY. Further, 7.7% of the top portfolios tracked by TipRanks, increased their exposure to EBAY stock over the past 30 days.
Is it Worth Buying eBay Stock?
Overall, the Wall Street community is cautiously optimistic about the stock with a Moderate Buy consensus rating based on eight Buys, 12 Holds, and two Sells. The average EBAY stock price prediction of $53.68 implies the stock has an upside potential of 18.3% from current levels. Shares have declined 37.2% over the past year.
Final Thoughts
With competition from other marketplaces, eBay is trying to create a niche for itself in the trading card category. Keeping this in mind, the company’s acquisition of TCGplayer should enhance its position as the preferred platform for dealing in trading cards.
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