Advertisement
U.S. markets open in 3 hours 26 minutes
  • S&P Futures

    5,302.50
    -5.75 (-0.11%)
     
  • Dow Futures

    40,127.00
    -17.00 (-0.04%)
     
  • Nasdaq Futures

    18,473.75
    -30.00 (-0.16%)
     
  • Russell 2000 Futures

    2,134.70
    -3.70 (-0.17%)
     
  • Crude Oil

    81.88
    +0.53 (+0.65%)
     
  • Gold

    2,217.20
    +4.50 (+0.20%)
     
  • Silver

    24.57
    -0.19 (-0.76%)
     
  • EUR/USD

    1.0779
    -0.0050 (-0.46%)
     
  • 10-Yr Bond

    4.1960
    0.0000 (0.00%)
     
  • Vix

    13.02
    +0.24 (+1.88%)
     
  • GBP/USD

    1.2601
    -0.0037 (-0.29%)
     
  • USD/JPY

    151.4430
    +0.1970 (+0.13%)
     
  • Bitcoin USD

    70,565.62
    +533.60 (+0.76%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,969.91
    +37.93 (+0.48%)
     
  • Nikkei 225

    40,168.07
    -594.66 (-1.46%)
     

What The Purchase Of Qoo10's Japan Assets Does For eBay

eBay Inc (NASDAQ: EBAY) announced Tuesday a deal to buy Giosis' Japanese business, including the Qoo10.jp platform.

The Analyst

Credit Suisse analyst Paul Bieber maintained his Outperform rating and $51 price target for eBay, his favorite large-cap idea.

The Thesis

The deal expands eBay's Japanese footprint and bolsters its cross-border trade capabilities with the Japanese market, Beiber said in a note.

eBay provided the seed capital to launch e-commerce platform Qoo10 in 2010, and participated in its Series A funding in 2015, with the purchase price reportedly $700 million, the analyst said.

Beiber said Giosis generated $800 million in gross merchandise volume, or GMV, including 40 percent from Japan, for eBay, although it's not clear whether the data pertains to 2016 or 2017.

Meanwhile, Credit Suisse's designation of eBay as its favorite large-cap idea is based on:

  • Potential Marketplace GMV acceleration

  • Payment intermediation option value

  • Potential monetization of classified and/or Stubhub businesses, estimated at $10 billion

  • Improved transaction revenue growth

The Price Action

EBay shares are up about 26 percent over the past year.

Related Links:

Paypal's Long-Term Story Remains In Place Despite eBay Split, Says William Blair

4 Key Points From BMO's eBay Upgrade

Latest Ratings for EBAY

Feb 2018

BMO Capital

Maintains

Outperform

Outperform

Feb 2018

Bank of America

Maintains

Buy

Buy

Feb 2018

Stifel Nicolaus

Maintains

Hold

Hold

View More Analyst Ratings for EBAY
View the Latest Analyst Ratings

See more from Benzinga

© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Advertisement