EBay proves the naysayers wrong -- again
The Internet pioneer was left for dead not too long ago, but it has been on a roll lately with a stock price that looks like it's nowhere near out of gas.
The average 52-week price target on eBay is $60.61, about 11% higher than where it recently traded. It's not exactly a value stock at a price-to-earnings multiple that tops 27, which is a five-year high. But eBay is a bargain compared with rival Amazon.com (AMZN), which trades for more than $260 and has a P/E ratio pegged by Bloomberg topping 240. Moreover, eBay's earnings are expected to rise in the current quarter, and Amazon's are projected to fall.
During eBay's recent presentation to Wall Street analysts, management predicted it could increase its annual profits by 15% to 19% over the next three years, better than what had been expected. The company also is doing well outside the U.S. and has forecast that sales in emerging markets will rise four times current levels in three years.
At a time when companies such as Facebook (FB) are trying to figure out their mobile strategies, eBay is nailing it. This year the company expects to generate $20 billion in mobile commerce and payments volume. EBay plans to expand its same-day shipping service, eBay Now, and CEO John Donohoe recently told Fortune that customers may be able to get goods from its partners delivered within an hour.
And the good news doesn't stop there. By 2015, eBay expects to enable $300 billion in global commerce, up more than 70% from $175 billion in 2012. Payments revenue is expected to surge more than 50% to $21.5 billion during that same time period.
EBay continues to offer fairly modest risks and potentially high rewards for most investors. Act now before the company silences its critics once again.
Jonathan Berr does not own shares of the listed companies. Follow him on Twitter @jdberr.
Ebay may be good for stock holders but it's a far cry from what it was for small sellers, they "Fee" you to death and have so many restrictions it almost impossible for the small guy to compete. It's only a matter of time before that bites them in the stock prices.
In the last few years, they've become extremely expensive. Their fees are ridiculous. They recently charged me a $200 "fee" when I sold a camcorder. PayPal then charged me $30.00 for their fee. This was on top of dealing with a buyer who won my auction, but turned out to be a fraud.
When I tried to resolve this issue, eBay stated there was a four day grace period. In the meantime, I wasted nearly a week before I could try and sell the camcorder again. eBay also does not make it easy to resolve problems with buyers.
eBay used to fun, but it's not anymore.
eBay just simply sucks these days!!! They RIP YOU OFF with HUGE fees INCLUDING taking a percentage of the fee the seller charges for shipping causing the seller to have to OVERCHARGE a buyer for shipping so as not to actually lose money on the sale by the time eBay is done gouging the seller!!!! & should be ashamed of themselves, but when you are living the phat life by taking advantage of the "little people" and you lack any sort of integrity in your life, I guess it is pretty hard to feel bad, eh?
eBay is also quick to penalize sellers by allowing buyers to negatively impact their feedback scores but doesnt allow sellers to warn other sellers about deadbeat buyers by allowing the seller to leave negative feedback if a buyer doesnt pay or takes forever to pay or is just simply a lousey buy as a lot of buyers on ebay are these days!!!
They won't make another penny from me as an Ebay seller. Of the last 5 items I listed on Ebay 3 of the buyers switched the item I sent them and returned something different and asked for a refund.
One item wasn't even close what I sent the buyer, I never owned this type item this buyer sent back. Ebay/PayPal said I had to refund their money.
eBay has become nothing more than a marketplace for STOLEN and SHOPLIFTED GOODS these days!!!! In addition, eBay has made their site so user friendly for the DISHONEST buyer to RIP-OFF the honest seller!!!! A garage sale would be easier and safer for a seller these days than ebay would be!!!!
HEY EBAY, YOU SUCK!!!!!!!!!!!!!!!
$25. a share is something to rave about???? Must be a slow Monday at MSN, who by the way is tied into Ebay financially. Hhhmmmmmm.
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