In the e-Commerce space, I think the most loved stock is that of Amazon.com Inc. (AMZN – Analyst Report) and for good reason too. It has reported a 113.07% year-to-date stock growth. In addition, its strongest season is knocking on the door!
Amid all the media attention that Amazon is busy getting, there is another stock which, we strongly feel will gain from the upcoming holiday season — eBay Inc. (EBAY – Analyst Report).
eBay, with a Zacks Rank #2, is one of the largest online retailers in the world. In the last-reported quarter, the company beat the Zacks Consensus by 2 cents as the active buyer base rose 5% year over year to 159 million. Gross merchandise volume (GMV) rose 6%. Free cash flow was a healthy $462 million in the quarter.
What’s More?
It raised the full-year EPS to $1.80–$1.82 from $1.72–$1.77.
And this holiday season it’s quite evident that eBay wants to become more of an end retailer and less of a search-driven source for second-hand goods. The two-decade-old company is rolling out a string of marketing programs and promotional deals to help shoppers and sellers alike.
The San Jose, CA-based company has already rolled out its Wish Bigger campaign, with a distinct “holiday hub” website for all seasonal shopping, and a “heatmap” that trails the most wanted items in different regions.
The company intends to let customers decide on hot Black Friday deals for this campaign. eBay will allow three customers to crowdsource the deals they want the most “while skipping the chaos – but not the savings – of Black Friday.”
Ebay-wish-bigger.com, set to become live from Thanksgiving Day, will let shoppers vote to “break open and unlock a series of incredible deals.” The one that gets the maximum votes within an hour will be released to buyers in limited quantities.
On top of that, it will offer “deep discounts” on the most wanted items on eBay.com/deals, launching every hour around the clock from Thanksgiving Day through Cyber Monday.
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