Card Market Minute: eBay Earnings Driven By Strong Growth of Sports Card Sales
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According to eBay CEO Jamie Iannone, "the trading card segment grew by “healthy double digits” compared to last year, and what’s even more exciting is the fact that most of that growth came from the number of cards sold, not just the higher prices cards have commanded in recent months". From a macro perspective, this means that not only are more people joining the hobby, they’re also staying active, which is certainly a positive indicator of things to come.
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When it comes to growth drivers, this isn’t the first time sports cards have a key role for eBay. In fact, this is the second quarter in a row that sports cards were a contributing factor. Although eBay didn’t provide a specific breakdown on segment-by-segment basis, the company reported stronger than expected revenue of $2.59 billion and better than expected earnings-per-share (EPS) of $1.38/share.
In addition to the strong revenue and better-than-expected EPS, eBay’s acquisition of Goldin Auctions added 0.3% to the company’s sales volume, while its partnership with PSA resulted in the sale of over 500,000 cards since it started consignments back in November.
eBay’s CEO then goes on to mention that tariffs and trade policies will most likely not have an impact on the sports card market, especially since a large majority of transactions occur within the United States. That in turn, makes the sports card and collectibles market much more stable when compared to many of eBay’s other segments that are driven by international buyers and sellers. From a forward looking perspective, eBay expects revenue for the next quarter to be in-line or slightly above estimates and sports cards are again expected to have a notable impact on results.
It should be noted that the sports card and collectibles marketplace is thriving and not only has there been an increase in the demand for vintage cards (both graded and ungraded), there's been a strong demand for sports cards as a whole and that's not just a testament to who we are as collectors, but rather a testament to growing interest of the marketplace as a whole especially when it comes high-end investors, Hollywood celebrities, and even professional athletes.
Passionate sports card collector and writer based in Queens, NY. Lifelong fan of the New York Mets, Jets, and Rangers. Covering sports cards and collectibles with deep industry knowledge and enthusiasm, while bringing a fresh perspective to the ever-evolving hobby world on http://SI.com/collectibles.
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