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Wednesday October 10, 2012
eBay: 'Buy it Now'
by Geoffrey Seiler, editor Bullmarket.com We continue to view Ebay (EBAY) as one of the most exciting names currently on our Recommended List when looking at its five-year potential. eBay bought GSI Commerce in 2011 for $2.4 billion. GSI brought with it more than 180 retail customers, many of them in long-term relationships, for which it provides e-commerce technology and product fulfillment services. GSI's clients include major retailers like Toys "R" Us, and all of the major professional sports associations. The acquisition exposed GSI to new tools and technologies within eBay. Chris Saridakis, the CEO of GSI Commerce explained how these various tools can be put together to drive sales for its clients. "RedLaser is a device where you can download the app and a barcode and be able to get pricing. Milo lets retailers expose inventory at the store level and Where.com is an ad network that geo-fences consumers based on where they physically are," Saridakis said. "Combining all three of those gives our client, Toys 'R' Us, the opportunity to now target a consumer who may be in a physical store or near a store, with an offer or a coupon to drive that person in the store," he added. "The opportunity then is for them to click Buy It Now, pay now with PayPal, and they can either pick it up in the store, or one of the GSI fulfillment centers. They don't have to walk out with a bicycle then, they can also have it shipped to their house," Saridakis said. Some of these smaller deals may not have made a lot of sense separately to investors, but we always liked the GSI acquisition and Saridakis did a good job of explaining how the parts fit together. Suffice to say, we are also big fans of how eBay CEO Donahoe has transformed the company. Overall, we rate eBay a "Buy" with a $55 price target. Learn more about this financial newsletter at Geoffrey Seiler's Bullmarket.com. Related articles: 
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