Is EBAY regaining its innovative mojo?
Running Point and its chief investment officer, Michael Ashley Schulman, CFA, were quoted by Reuters in an article—by Yuvraj Malik, “EBay forecasts upbeat revenue as sneakers, refurbished items drive growth”—regarding the outlook for EBAY’s revenue, earnings, and strategy.
EBAY fights for relevance
Not surprised that EBAY beat sales and profits estimates in the first quarter. As consumers dwindle there excess pandemic savings and get savvy to inflationary income erosion and potential economic storms ahead, online deal marketplaces like EBAY should gain increased attention from those looking for bargains on everything from luxury items to common household necessities. They are even reaching further into the business-to-business (B2B) market for machinery and equipment.
EBAY has improved its seller tools and authentication services, and enabled unified listings and live events to boost its global e-commerce footprint. Yet even with all these innovtions, what many seem to miss is that EBAY is 1/3 the market cap of Shopify but with nearly 50% more revenue.
Quoted article excerpt is below:
“EBay seems to be gaining its original innovative mojo with improved payment, marketing, storage, user interface, and authentication,” said Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors.
“Yet their potential earnings growth and turnaround capabilities don’t seem to be baked into the stock price.”
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