eBay (EBAY) Worth More Than Amazon (AMZN)? Analyst Says it's Well on Way

December 31, 2012 2:05 PM EST
Get Alerts EBAY Hot Sheet
Price: $30.22 -1.37%

Rating Summary:
    28 Buy, 25 Hold, 2 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 22 | Down: 17 | New: 13
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Investors looking for an e-commerce play need look no further than eBay (NASDAQ: EBAY). With the reaccelerating marketplace growth, combined with huge potential for its PayPal and mobile services, analysts at BGC think one day the company could be worth more than Amazon (NASDAQ: AMZN).

eBay recently updated its marketplace to make it more competitive and easier to use, enticing shoppers. So far results have been impressive, thinks analyst Colin W. Gillis.

"The new eBay marketplace is here, and we expect the business to grow at or above market rates for ecommerce of approximately 15% for the upcoming year, in our opinion. With sold items growing 19% YoY, U.S. gross merchandise volume (GMV) growing at 16% YoY, and new users growing at the fastest clip since 2007 at 10%, the company has positioned itself for a strong December holiday quarter and 2013,” said Gills.

Grills is also very optimistic about eBay's progress in mobile.

"eBay has cited that nearly one in every three purchase on eBay is touched by mobile. The company expects to process over $10 billion in mobile payment in 2012, and downloads of eBay mobile apps topped 100 million last quarter," noted Grills.

Despite gains, compared to Amazon, eBay is still an underdog and will likely play second fiddle throughout 2013 and beyond. None the less, BGC views the stock as a top pick for 2013.

BGC Partners reiterated a Buy rating on eBay (NASDAQ: EBAY) and raised its price target to $65.00 (from $52.00).

For an analyst ratings summary and ratings history on eBay click here. For more ratings news on eBay click here.

Shares of eBay closed at $49.81 yesterday.

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eBay worth more than Amazon
Christopher Collins on 2014-01-07 16:47:27
Mark as Spam | Reply to this comment

Totally agree that eBay will overtake Amazon. As an affiliate interested in promoting both companies, the eBay Partner Network has far superior affiliate tools than Amazon. Every company must consider its affiliates.

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