September 17, 2009
By the ZippyCart Shopping Carts Content Team
Ebay and Amazon are showing signs of improvement as various analysts upgrade the ratings for their stocks. Ebay (EBAY) had its rating improved by Piper Jaffray and UBS, which caused shares to rise earlier this week. Piper Jaffray determined via an ecommerce analysis that Ebay had made solid changes to their marketplace, which will help stabilize the business. They also felt the modifications to the marketplace will allow Ebay to be more competitive. Web traffic to Ebay has also been strong as of late, which added confidence to increase the stock rating. The analyst at UBS raised their target price per share to $28 from $24 and the analyst at Piper Jaffray raised their target price per share to $30 from $19.
Amazon also had positive news with Bank of America analyst Justin Post upgrading Amazon (AMZN) shares this week from neutral to a buy rating. He feels it is underestimated more than other online retailers among other analysts. Not only is Post optimistic about Amazon, he also has a promising outlook on the growth of ecommerce in 2010. 2009 has been a rough year for ecommerce growth due to the economic recession, but 2010 should see a rebound. Not only is the economy picking back up, but online sales continue to take market share away from traditional brick and mortar retailers. Post sees ecommerce growth returning back to double digits in 2010 as well as 2011. Therefore it is a perfect time for merchants to try and start their ecommerce business or improve an existing online business so they can capitalize on the expected growth in the sector.
Nick was born and raised in California, but has been working the dot com scene in Seattle for many years. He co-founded ZippyCart back in 2009, and now works here full-time. Nick wears many hats at ZippyCart, including producing content for our Ecommerce News blog. Nick loves photography and the outdoors, so when not working on ZippyCart you can find him out and about in Seattle.
