Rare Trading Cards Outperform Wall Street Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 29 2026
0mins
Should l Buy EBAY?
Source: CNBC
- Alternative Asset Surge: As collectors increasingly view 1990s and 2000s Pokémon cards as alternative assets, trading card indexes have surged during the pandemic and are expected to rise again in 2025, outperforming the S&P 500's average annual return of 10% to 12%.
- Scarcity Drives Prices: For instance, a rare Pikachu Illustrator card owned by Logan Paul sold for over $16 million in February, setting a record for the highest price ever paid for a trading card at auction, highlighting the scarcity and demand in the high-end market.
- Grading Impacts Value: The condition and grading of cards are critical to their value, with a perfect condition card potentially worth $100,000, but only fetching 1% to 2% of that value if in lower condition, indicating the significant premium for graded 10 cards in the Pokémon market.
- Market Risks and Volatility: While sales of non-sports trading cards surged 350% from 2020 to 2025, the prices are highly volatile and influenced by hype, lacking the stability of traditional markets, which necessitates caution for investors.
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Analyst Views on EBAY
Wall Street analysts forecast EBAY stock price to fall
8 Analyst Rating
2 Buy
5 Hold
1 Sell
Hold
Current: 107.690
Low
60.00
Averages
95.00
High
112.00
Current: 107.690
Low
60.00
Averages
95.00
High
112.00
About EBAY
eBay Inc. is a global commerce company. The Company's technology empowers buyers and sellers in more than 190 markets globally. Its online marketplace is located at www.ebay.com and its localized counterparts, its off-platform marketplaces and its mobile apps. Its Marketplace platforms enable buyers and sellers to its global scale and continue investments in technology, marketing and customer service. Its eBay Money-Back Guarantee program allows buyers to obtain a refund if an item does not arrive, is damaged or faulty, or differs materially from its description, and applies to most purchases completed through payment methods. It develops intuitive user interfaces; buyer, seller and developer tools; and transaction processing, databases and network applications that enable its users to complete transactions on its Marketplace platforms. Its technology infrastructure simplifies the storage and processing of data, eases the deployment and operation of global products and services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Market Sentiment Shift: While GameStop's board unanimously supports the acquisition proposal, eBay's directors are still reviewing it, and retail investor sentiment around eBay has shifted from 'extremely bullish' to 'bullish', reflecting a complex market attitude towards the acquisition.
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- Acquisition Proposal Analysis: GameStop's bid to acquire eBay for approximately $56 billion in cash and stock has prompted analysts to suggest that eBay should consider the proposal, provided shareholder interests are clearly defined, although it faces significant equity rollover challenges.
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- Leadership Style Impact: Analysts believe that under GameStop CEO Ryan Cohen's leadership, eBay could see a transformation in operational efficiency, but shareholders would require a larger cash component to mitigate the risks associated with such a significant business overhaul.
- Market Reaction: eBay's stock price surged following the acquisition news, indicating investor interest in eBay's future prospects, while also sparking speculation about potential competing bidders for the e-commerce giant.
See More
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- Financing Commitment Condition: GameStop has secured a $20 billion financing commitment from TD Securities, but a key condition is that the combined company must maintain an investment-grade credit rating, which could jeopardize the deal's feasibility.
- Credit Rating Risk: Moody's Ratings indicated that the acquisition would be 'credit negative' for eBay, estimating that the combined company's leverage could approach nine times, significantly exceeding investment-grade thresholds.
- Market Value Comparison: With a market value of approximately $11 billion, GameStop represents only a fraction of the implied value of the transaction, raising questions about its financing capabilities; the CEO mentioned the possibility of issuing additional stock to facilitate the deal.
- Board Review: eBay has confirmed receipt of GameStop's acquisition proposal and stated that its board will review it, with future decisions directly impacting the progress of the transaction.
See More
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- Analyst Insights: Wedbush Securities analyst Michael Piccolo noted that Cohen's actions appear more as a publicity stunt than a genuine M&A proposal, although the 13D and HSR filings indicate formal hostile intent that eBay's board must review under fiduciary duties.
- Investor Focus: Piccolo suggests that event-driven investors should watch whether this ongoing drama attracts other credible bidders or forces eBay to accelerate capital returns and strategic actions to defend against further activism.
- Market Performance Analysis: While eBay's shares trade near their 52-week high, the forward price-to-earnings ratio remains below 18, and its market cap is under $50 billion, indicating that the brand still holds secondary market advantages over competitors like Amazon and Walmart.
See More
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- Investment Grade Implications: The letter suggests that the merger with eBay is crucial for improving GameStop's financial standing and attracting more investors.
See More
