Wedbush Says Alibaba-eBay Merger 'Unlikely'
eBay Inc (NASDAQ: EBAY) investors hoping their company will be acquired by Alibaba Group Holding Ltd (NYSE: BABA) may need to re-evaluate their thinking, at least according to Wedbush analyst Gil Luria.
EBay briefly spiked up Wednesday morning amid unconfirmed rumors that Alibaba was looking to acquire the company.
Speaking to Benzinga, Luria said that it is "wishful thinking" for eBay owners as it is "unlikely that deal will happen."
Luria noted that Alibaba is poised to grow in China by at least 30 percent for several years. The analyst also added that the Chinese-based company will seek out acquisitions in other emerging markets.
Related Link: Alibaba's Potential Amazon-Killer Is Getting Bigger
Luria does see Alibaba entering the developed and more mature U.S. space, just not in the near-term. He suggested an appropriate timeframe would be in the next five to 10 years.
After spiking to $57.61, shares of ebay traded recently at $56.83, down 0.44.
Shares of Alibaba traded at $85.25, up 3.7 percent.
Latest Ratings for EBAY
|Mar 2017||Barclays||Initiates Coverage On||Overweight|
|Jan 2017||Aegis Capital||Initiates Coverage On||Buy|
|Oct 2016||Hilliard Lyons||Upgrades||Long-Term Buy||Buy|
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