His view that eBay is an underperformer is one that many on Wall Street held for years but one that eBay’s strong financial performance and stock increase in the last year challenges.
EBay has also invested in tech: it recently introduced an AI-powered feature called “magical listings,” which allows sellers to take a photo of an item, which the platform’s AI then uses to fill in details such as a suggested price. Via Goldin, a company it owns, eBay also dipped its toes into the exploding market for Pokémon cards.
So far, eBay has the numbers to claim its turnaround is working. Last quarter, revenue climbed 19% to $3.09 billion, while profit rose along with gross merchandise value (GMV is the value of what is sold on its site.) EBay shares were up 50% in the last year before news of the offer, reflecting Wall Street’s belief that Iannone’s plan is working.
Cohen told the WSJ he saw plenty of synergies between GameStop and eBay, given their common focus on collectibles, and suggested GameStop stores could serve as authentication centers for items bought on eBay, among other advantages. He also sees potential for eBay to succeed in live commerce, where consumers buy items via a live stream.
Some analysts think it may be best for eBay if a deal doesn’t happen. “Why disrupt things? The turnaround is working,” Bernstein analysts wrote of the company in a note to clients, while also noting they see “real challenges” in structuring the deal Cohen proposes.
