NEW YORK (TheStreet) -- eBay Inc. (EBAY) will begin running ads on its mobile app in the fourth quarter, moving the e-commerce company into the lucrative market for advertisements on devices such as smartphones and tablets, Reuters reports.
E\eBay's users spend 150 minutes on its app per month, three times higher than its nearest rival, said Stephen Howard-Sarin, eBay's head of display advertising in North America.
The company can better tailor its ads because users have single, universal login across all their devices, he said.
Berkshire Hathaway's (BRK.A) insurance unit Geico is among the first advertisers on eBay's mobile ad network, Reuters noted.
Mobile ad spending in the U.S. will total $17.73 billion this year, up 83% from $9.69 billion in 2013, according to eMarketer.
Shares of eBay are flat in pre-market trading.
TheStreet Ratings team rates EBAY INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate EBAY INC (EBAY) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its growth in earnings per share, increase in net income, revenue growth, largely solid financial position with reasonable debt levels by most measures and good cash flow from operations. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."