eBay (EBAY) has acquired NFT marketplace KnownOrigin. With a presence in more than 190 countries, eBay is one of the world’s major e-commerce companies alongside Amazon (AMZN), Shopify (SHOP), and Alibaba (BABA).
Founded in 2018, UK-based KnownOrigin is among the leading platforms for buying and selling non-fungible tokens (NFTs). It competes with the likes of OpenSea, Rarible, Nifty Gateway, and Coinbase (COIN). It has generated $7.8 million in sales since its debut.
eBay Gets a Boost in Its NFT Business Pursuit
Apart from selling regular products, eBay also has a section for trading NFT items. It started selling NFTs in May 2021. It recently expanded the NFT business with the launch of its own NFT collection featuring ice hockey legend Wayne Gretzky. The KnownOrigin acquisition marks a further expansion of eBay’s NFT business.
“KnownOrigin has built up an impressive, passionate, and loyal group of artists and collectors making them a perfect addition to our community of sellers and buyers,” commented eBay CEO, Jamie Iannone.
The NFT market presents a huge growth opportunity for eBay. In 2021, global NFT sales were estimated at only $15.7 billion. The market is forecast to grow to more than $122 billion by 2028.
Wall Street’s Take
The Street is cautiously optimistic about eBay stock with a Moderate Buy consensus rating, based on nine Buys, 12 Holds, and two Sells. The average eBay price forecast of $55.62 implies 29.4% upside potential from current levels. Shares have declined 35% year-to-date amid the market sell-off.
TipRanks data shows that financial blogger opinions are 86% Bullish on EBAY, compared to a sector average of 69%.
Key Takeaway for Investors
NFTs are expected to play a central role in the metaverse, which itself is forecast to be worth over $8 trillion by 2030. eBay appears to be taking the right steps to better position itself for the future of digital commerce.