EBay is in the headlines…
EBay just penned a $9.2 billion deal.
One of the internet’s oldest businesses just got a new owner.
EBay, which started 25 years ago, has officially sold its classified ads business. And it’s been acquired by Adevinta, a Norway-based classified ads publisher owned by Norwegian publisher Schibsted. This is a massive deal for Adevinta, valued at $9.2 billion, which includes eBay getting $2.5 billion in cash and 540 million Adevinta shares. The agreement makes eBay a 44% owner of Adevinta, with a 33.3% voting stake.
This purchase will officially make Adevinta the largest online classified ads company in the world.
And there’s a good reason why eBay decided to split off from the sector that it has held since 2005- it’s struggling to keep up with Amazon. This struggle isn’t new, as many online eCommerce shops have struggled to keep up with the ever-growing Amazon platform.
Where’s the money?
The deal has caught the attention of news outlets, Wall Street, and small investors alike – many wondering if this influx of cash could make for a nice, profitable setup.
But truthfully, the way I look at it, in the current world we live in, eBay classifieds was just a small pebble in the giant pond for the online marketing space. In fact, when you look at the numbers, eBay only makes up about 3% of the $125 billion industry.
And that’s why I’m not getting caught up in the latest headlines addressing the newest eCommerce deal in the mix.
And here’s why…
How can I get some?
It makes sense that people are currently looking for profit opportunities in the digital world. With Coronavirus, businesses and consumers are shifting their focus to the online world. From ordering your food via your favorite delivery app to purchasing new clothes from your favorite store’s website – the online world has become something we use every day.
As we leave a digital trail online, we see our browsing experience adjust to our habits. And suddenly, we see ads that are tailored to our interests. I know for me, I always see ads for Lululemon and the stores I have been visiting.
That’s the power of the online marketing industry, and it’s all done with targeted ads. Targeted ads know the consumer behavior, and instead of waiting for the consumer to seek out the products – it puts items they might be interested in right in front of them.
And targeted ads are precisely why I’m not enthralled by this recent classified ads deal – because I believe that targeted ads, no classifieds, are the future. That’s also why I have been and will continue to focus my money on those that lead the targeted ads industry – like Facebook and Google.
Now, when it comes to buying these stocks, I’m not just buying them on a whim. Instead, I am waiting on a pullback to come, buying on any dip in the stock I see.
In the Spotlight: This automobile marker…again
We recently talked about Ford and the reveal of its newest model coming to market – the reimagined Ford Bronco. And the consumer response was exactly what they hoped as presales skyrocketed as soon as the news hit the airwaves.
And now, the company is looking to bring in even more buyers.
About a year ago, Ford started quietly working on their next electric vehicle, except this one would come jam-packed with 1,400 horsepower. And as of Tuesday, this idea has come to life as Ford revealed the Mustang Mach-E 1400.
This car comes loaded with seven electric motors and has a top speed of 160 mph. And the company is going in full steam to have this car on the market by 2022. This launch date will follow closely on the heels of the Bronco’s release, which is slated for some time in 2021.
Over the past year or so, Ford has struggled with staying profitable. Keeping up with the ever-evolving auto industry is a tough gig, but I believe the company is taking a step in the right direction to get back on track with these new releases.
And that’s why Ford has been and will remain on my watchlist for a future opportunity. And I’ll be sure to keep you updated.
I just shared with you the details on a major acquisition, a continuing market trend for our new world, and a big product announcement…
To me, those all imply some serious profit potential.
More importantly, events like this are specifically what I built my proprietary S.C.A.N. trading system to detect…
By the time other investors are informed of a pick that’s trending upward, we’ve already collected profits because we saw that trend ahead of time!
My Project 303 readers are constantly receiving new recommendations from this system, and I want you to join us for the next round.
Click here now to learn how you can be a part of Project 303.