EBay sees double-digit growth

Naysayers said Amazon would eat the auction giant's marketplace business for lunch, but it continues to post strong growth.

By Motley Fool Investor Beat Jan 23, 2014 4:21PM
EBay (EBAY) shares rose slightly Thursday as the company released some very strong earnings numbers.

The company's PayPal segment was able to grow its revenue by nearly 20 percent, and its marketplace segment, which many have thought recently would suffer greatly trying to compete with Amazon (AMZN) was able to post double-digit growth as well.
However, the bigger story many investors are watching here comes from well-known activist investor Carl Icahn, who owns a 0.82 percent stake in eBay, and has come out pushing hard for the company to split off its PayPal business, seen by many as growing at a faster pace than the core marketplace business. EBay's response so far has been a polite "No thanks."eBay headquarters in San Jose, Calif. (© Ben Margot/AP Photo)

In this video however, Motley Fool financial analyst David Hanson tells investors why he thinks this is a deal that, though it won't happen immediately, could happen further down the road.

He also sees the company's multiple of 26 times earnings to be fair for a company still growing at this pace, and sees several reasons to be interested in this stock today.

The Motley Fool's 12 top stocks for 2013 are now available! So if you're tired of picking stocks out of a hat and hoping that one skyrockets, check out Stocks 2013: The Investor's Guide to the Year Ahead. It's The Motley Fool's current top report, and includes Chief Investment Officer Andy Cross's top stock for 2013! This under-the-radar company is the secret winner in the war for the last precious drops of oil on the planet. Find out what it is and how you can take advantage of this unseen company's huge profits in this special, free report, just click here now.


Tags: AMZNEBAY
0Comments

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

STOCK SCOUTER

StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

124
124 rated 1
267
267 rated 2
467
467 rated 3
605
605 rated 4
645
645 rated 5
691
691 rated 6
617
617 rated 7
459
459 rated 8
313
313 rated 9
130
130 rated 10
12345678910

Top Picks

SYMBOLNAMERATING
AAPLAPPLE Inc10
ATVIACTIVISION BLIZZARD Inc10
BIDUBAIDU Inc10
BXTHE BLACKSTONE GROUP L.P10
CELGCELGENE CORP10
More

VIDEO ON MSN MONEY

ABOUT

Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.