Feeds

QXL shares rally on analyst's prediction

Plucky Brits go gunning for eBay

  • alert
  • submit to reddit

Maximizing your infrastructure through virtualization

QXL saw shares dip slightly today after an analyst's tip yesterday sent prices soaring. The UK online auctioneer saw its share price more than double to 606 pence, up on Wednesday's close of 280 pence. At one point the dotcom's shares leapt as high as 800 pence on the London Stock Exchange – with 54 million shares traded in QXL in London by 4.05pm GMT. The individual behind this frenzy was Thomas Bock, a new analyst for brokerage SG Cowen, who put a strong "buy" recommendation on QXL and tipped it as Europe's answer to eBay. Bock predicted QXL would be worth as much as the US online auction house in two years by comparing it to eBay's current stock market worth of $25 billion, giving it a £44 two-year price target. The company's shares had been adjusted on Thursday after it announced a 3-for-1 stock split. "We believe the QXL.com story represents a unique combination of large market opportunity, defensibility, first-mover advantage, and attractive business model," Bock said in a research note to clients, Reuters reported. "If QXL.com does hold on to its leading position during that time frame and over the longer term successfully expands beyond Europe, then we believe that, due to the size of the potential market, QXL.com could actually achieve valuations in excess of $25 billion," wrote Bock. Bock's comments came amid a general rallying of British technology stocks, following weeks of fears that bubbles were bursting all over the dotcom economy. QXL's share price was down 36 pence at 570 pence this afternoon. ® Related stories: QXL losses up, sales down and heading in the right direction QXL buys Norwegian auction site Carry on Falling – Lastminute shares

The Power of One Infographic

More from The Register

next story
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Airbus promises Wi-Fi – yay – and 3D movies (meh) in new A330
If the person in front reclines their seat, this could get interesting
UK Parliament rubber-stamps EMERGENCY data grab 'n' keep bill
Just 49 MPs oppose Drip's rushed timetable
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
Samsung threatens to cut ties with supplier over child labour allegations
Vows to uphold 'zero tolerance' policy on underage workers
Dude, you're getting a Dell – with BITCOIN: IT giant slurps cryptocash
1. Buy PC with Bitcoin. 2. Mine more coins. 3. Goto step 1
prev story

Whitepapers

Reducing security risks from open source software
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.