Why eBay Inc (EBAY) is in the Spotlight

eBay Inc (NASDAQ:EBAY) is in the spotlight today due to the e-commerce giant agreeing to invest half a billion dollars in cash and exchanging its eBay.in business for an equity stake in Flipkart. In addition, the two e-commerce companies have agreed to jointly pursue cross-border trade opportunities to make eBay’s global inventory accessible to more India consumers, and vice versa with eBay doing the same for Flipkart globally. CEO Devin Wenig said, ‘The combination of eBay’s position as a leading global eCommerce company and Flipkart’s market stature will allow us to accelerate and maximize the opportunity for both companies in India. eBay is committed to winning in India in partnership with Flipkart. Our exclusive global trade partnership will allow eBay and Flipkart to reach even more consumers around the world’. Given India’s large population and fast growing GDP rate, eBay Inc (NASDAQ:EBAY) bulls hope that Flipkart will become India’s version of Alibaba and help unlock substantial value for the transaction in the long run.

What Does The Smart Money Sentiment Say?

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Of the 742 elite funds we track, 64 funds owned $2.5 billion of eBay Inc (NASDAQ:EBAY) and accounted for 7.50% of the float on December 31, versus 53 funds and $3.71 billion respectively on September 30.

The Bottom Line

eBay Inc (NASDAQ:EBAY) is in the spotlight today due to the e-commerce giant agreeing to invest half a billion in cash and exchanging its eBay.in business for an equity stake in Flipkart. For more reading, check out ‘10 Most Expensive Cars Ever Sold At Auction‘.

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