Why eBay -yes eBay- will be a big AI winner
Caldwell Investment Management president and CEO Brendan Caldwell said eBay (eBay Stock Quote, Chart, News, Analysts, Financials NASDAQ:EBAY) is positioned for a potential resurgence as investors look for alternatives to dominant e-commerce platforms and as artificial intelligence improves product discovery in niche categories.
Speaking on BNN Bloomberg’s Market Call on Dec. 31, Caldwell said eBay’s strength lies in specialized verticals that remain underappreciated by the market.
“eBay is kind of kicking it old school,” Caldwell said. “People might think they’d forgotten about it, but where they really shine is in specific categories.”
Caldwell pointed to eBay’s significant exposure to automotive parts, refurbished goods and resale categories, noting that automotive parts alone represent a roughly $10-billion industry. He said those categories differentiate eBay from broader, logistics-heavy retail models and give the platform durable relevance.
“They’re actually really big in automotive and reselling of parts,” he said. “That’s something people don’t always connect with eBay.”
Caldwell said advances in artificial intelligence could further strengthen eBay’s competitive position by improving search, personalization and matching within its marketplace.
“As AI becomes more targeted, we actually think this could be a big winner,” he said. “Everyone talks about Amazon, but eBay is a bit under the radar. I think it’s going to have a comeback.”
He added that while large technology platforms are likely to continue dominating, eBay remains well positioned to benefit alongside peers such as Shopify, Meta and Microsoft, regardless of which hardware ecosystems ultimately prevail.
“The people behind the scenes, the Microsofts, the Amazons, and even the eBays of the world, we think will continue to prosper,” Caldwell said.
eBay stock has gained 40.80% over the past 12 months and is up 73.89% over the past five years. Of the analysts covering the company, 11 rate the shares “Buy,” 22 rate them “Hold,” and three rate them “Sell,” with a consensus price target of US$93.91.
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Rod Weatherbie
Writer
Rod Weatherbie is a journalist based in Prince Edward Island. Since 2004, he has written extensively about the Canadian property and casualty insurance landscape. He was also a founder and contributing editor for a Toronto-based arts website and a PEI-based food magazine. His fiction and poetry have been featured in The Fiddlehead, The Antigonish Review, and Juniper.