Ebay stock pops as analyst says live commerce market 'has started to take off'
Ebay shares jumped as Morgan Stanley analysts pointed to the company’s live commerce business as a major growth driver.
What happened: Stock ineBay (EBAY) popped 4% on Monday as Morgan Stanley analysts selected the online marketplace as a top pick.
What’s behind the move: Morgan Stanley analyst Nathan Feather said the company’s live commerce market “has started to take off in the US.” The feature, in which sellers host live video events to showcase products rather than static listings, was originally launched in 2022 and has expanded significantly since then.
“EBAY’s GMV [gross merchandise volume] growth acceleration has surprised even the most bullish investors, but the market has struggled to identify why,” Feather said in a research note on Monday.
“The $27B live selling market appears to be the missing piece, as we estimate it’s driving 40%+ of EBAY’s growth,” Feather added, raising his stock price target to $132 from $127, while maintaining an Overweight rating.
What else you need to know: Ebay stock has risen 33% year to date, trading just below its May all-time record high.
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Earlier this year, video game retailer GameStop made an unsolicited $56 billion bid for the legacy marketplace, which the company later rejected.
GameStop saw its profit rise last quarter, with a boost to its bottom line partly from its stake in eBay (EBAY).
Ines Ferre is a senior business reporter for Yahoo Finance.
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