This article was originally published on TipRanks.com
eBay Inc. (EBAY) has acquired the sneaker authentication business operated by Sneaker Con Digital. Through this acquisition, eBay aims to expand its sneaker verification process and enhance online customers’ confidence.
The financial terms of the deal, which was closed on November 24, remain undisclosed. Shares of the multinational e-commerce platform closed down 2.7% at $70.55 on November 29.
eBay is one of the largest online marketplaces for buyers and sellers. The company has a huge sneaker section, with more than 1.9 million pairs of sneakers up for sale daily. The acquisition brings more confidence to the sneaker community and accelerates the growth of eBay’s sought-after sneaker segment.
Sneaker Con was established in 2009, and since then has developed a global community of sneaker fans with operations in the U.S., the U.K, Canada, Australia, and Germany. It launched its authentication services in 2018.
In October 2020, eBay launched a sneaker authentication service called Authenticity Guarantee in partnership with Sneaker Con. A team of Sneaker Con experts provide online screening and verification of select sneakers online.
Since its launch, the service has revolutionized the way customers buy and sell sneakers online, which is reflected in eBay’s quarter-over-quarter growth in the category. The past year saw 1.55 million sneakers verified through the service.
SVP and General Manager of eBay North America, Jordan Sweetnam, said, “We partnered with Sneaker Con to launch sneaker authentication on eBay last year because the team shared our passion for the category – with best-in-class capabilities to deliver what our customers want most. The response to our authentication offering has been overwhelming, and this acquisition allows us to continue to transform eBay and bring a higher level of trust and confidence to every transaction.”
See Analysts’ Top Stocks on TipRanks >>
Overall, the stock has a Moderate Buy consensus rating based on 7 Buys and 12 Holds. The average eBay price target of $78.83 implies 12.02% upside potential to current levels. Shares have gained 39.9% over the past year.
TipRanks’ Website Traffic tool, which uses data from SEMrush Holdings (SEMR), the world’s biggest website usage monitoring service, offers insight into eBay’s performance.
In October, eBay website traffic recorded a 17.55% year-over-year decline in monthly visits. However, year-to-date website traffic growth increased 2.06% compared to the same period last year.
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