How eBay has sent the Digital Wine (ASX:DW8) share price up 50%

The Digital Wine (ASX: DW8) share price has surged 50% today after news the company intends to partner with online giant eBay.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Digital Wine Venture Limited (ASX: DW8) share price is through the roof today, after news the company intends to partner with eBay.

The online beverage distributor has signed a memorandum of understanding (MOU) with online shopping giant eBay to partner with Digital Wine Venture's WINEDEPOT.

At the time of writing, the Digital Wine share price is up 50%, trading at 16.5 cents.

Let's look further into the potential eBay partnership.

Two happy people use their hands as binoculars, indicating a positive ASX share price or on watch

Image source: Getty Images

WINEDEPOT and eBay

Under the MoU, eBay and WINEDEPOT will negotiate the terms of a partnership in which Australian wineries would be able to sell their products on eBay without an account of their own.

Instead, WINEDEPOT's trading platform, DIRECT, would enable wineries to list products on a range of channels, including eBay. WINEDEPOT would then pick, pack, and deliver wine orders made on eBay to customers.

Digital Wine Venture said this would allow eBay's 12 million monthly visitors to purchase from multiple wineries at the same time and take advantage of WINEDEPOT's same and next day deliveries in selected locations.

Commentary from management

Digital Wine CEO Dean Taylor says he was confident a partnership with eBay would help local producers generate more sales. He also mentioned that, in time, the partnership could benefit international wine lovers as WINEDEPOT looks to begin overseas delivery.

eBay Australia's managing director Tim MacKinnon also commented on the MoU:

We know bushfires and COVID border closures along with limited venue capacities have left countless Australian businesses doing it tough.

eBay exists to create economic opportunity, which is why we're excited to partner with WINEDEPOT, enabling local wine producers – many of which are located in regional areas – to scale their online offering and giving their local regions a much-needed economic boost.

Digital Wine share price snapshot

The online beverage distributer's share price opened at just 11.5 cents this morning; it is currently trading at 16.5 cents.

The Digital Wine share price has had a great year on the ASX, up 312% year to date and up 1,550% over the last 12 months.

The company has a market capitalisation of around $182 million, with approximately 1.6 billion shares outstanding.

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Share Gainers

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why Kingsgate, Neuren, Newcrest, and Pushpay shares are rising today

These ASX shares are avoiding the market selloff on Tuesday.

Read more »

A young woman wearing overalls and a yellow t-shirt kicks one leg in the air showing excitement over the latest ASX 200 shares to hit 52-week highs
Share Gainers

Why Neuren, Northern Star, Race Oncology, and Westgold shares are storming higher

These ASX shares are starting the week in a positive fashion.

Read more »

A woman wearing yellow smiles and drinks coffee while on laptop.
Share Gainers

Why APM, Macquarie Telecom, Northern Star, and Origin shares are rising today

These ASX shares are having a strong session despite the market selloff.

Read more »

Two boys with cardboard rockets strapped to their backs, indicating two ASX companies with rocketing share prices
Share Gainers

Catch these fast-rising 2 ASX shares before it's too late: Celeste

This pair of stocks rocketed up in February during reporting season, but are still great value for those willing to…

Read more »

three businessmen high five each other outside an office building with graphic images of graphs and metrics superimposed on the shot.
Share Gainers

Why Arafura, Myer, Volpara, and Xero shares are zooming higher

These ASX shares are making their shareholders smile on Thursday.

Read more »

medical asx share price represented by doctor giving thumbs up
Healthcare Shares

Guess which ASX biotech stock just rocketed 29% on big FDA news

The ASX healthcare share is attracting investor interest following FDA approval for its targeted cancer therapy compound.

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Mesoblast, PolyNovo, Pushpay, and Weebit Nano shares are charging higher

These ASX shares are having a strong session despite the market selloff.

Read more »

a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.
Share Gainers

Why InvoCare, Pentanet, Sayona Mining, and Weebit Nano shares are storming higher

These ASX shares are having a strong session on Tuesday.

Read more »