eBay (EBAY) Completes Certilogo Acquisition, Boosts Prospects
eBay EBAY recently announced that it has completed the acquisition of Certilogo, a provider of AI-powered digital IDs and authentication for apparel and fashion goods. The move aligns with eBay's commitment to offering secure and reliable product solutions while protecting customers from counterfeit items.
Certilogo, based in Milan, specializes in leveraging digital technology to empower brands and designers in managing the lifecycle of their garments. This acquisition enables eBay to provide brands with a seamless and flexible platform to engage with consumers and offer reliable product information. The incorporation of Certilogo's technology will enhance eBay's ability to deliver counterfeit-proof digital product passports, giving customers increased confidence in their purchases.
Although specific financial details of the transaction were not disclosed, eBay's acquisition of Certilogo is a strategic move that positions the company for long-term growth in the fashion and apparel market.
eBay Benefits From a Robust Portfolio
eBay shares have returned 13.1% year to date underperforming the Zacks Internet Commerce industry’s gain of 30.3%. Challenging macroeconomic conditions hurt ecommerce as gross merchandise volume (GMV) declined 3% year over year to $18.4 billion in first-quarter 2023.
eBay Inc. Price and Consensus
eBay Inc. price-consensus-chart | eBay Inc. Quote
Nevertheless, eBay benefited from the solid momentum across Promoted Listings. Further, robust managed payments offerings and strong traction among advertising offerings remain key drivers. Total advertising revenues grew 23% in the first quarter, while first-party ads grew 31%.
On an organic basis, GMV increased 3 points sequentially in the first quarter, driven by continued outperformance in focused categories, which grew the remainder of eBay’s marketplace by roughly 8 points in first-quarter 2023. Motors, parts, accessories, or P&A was the largest contributor to growth in eBay’s focus categories.
Acquisitions like Certilogo are expected to further drive eBay’s top-line growth.
For second-quarter 2023, eBay expects revenues between $2.47 billion and $2.54 billion. On an FX-neutral basis, the year-over-year growth in revenues is anticipated to be 1-4%.
GMV for the second quarter is likely to be within the band of $17.8 billion and $18.2 billion, indicating a decline of 4-2% on a spot rate basis and 5-2% on an FX-neutral basis.
Non-GAAP earnings are anticipated to be between 96 cents and $1.01 per share. The Zacks Consensus Estimate for earnings is pegged at 99 cents, unchanged over the past 30 days.
Zacks Rank & Stocks to Consider
Currently, eBay has a Zacks Rank #3 (Hold).
PDD Holdings PDD, Jumia Technologies JMIA and Carvana CVNA are better-ranked stocks in the same industry. While PDD Holdings sports a Zacks Rank #1 (Strong Buy), both Jumia and CVNA carry Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Jumia and Carvana have returned 32.1% and 650.4%, respectively, on a year-to-date basis. PDD Holdings shares have declined 12.9%.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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