Watching eBay, Inc.

Posted on April 20, 2006 , filed under Stocks | Print This Post

EBAY, eBay, Inc. has dropped today on analyst downgrades and is currently trading under $37. EBAY is down almost 8.5% today and is down approximately 14% for the year. EBAY is approaching the buy price I like at under $35. EBAY is a quick moving stock and has the potential to richly reward investors who buy as the analysts downgrade the company. The company together with its subsidiaries, provides online marketplaces for the sale of goods and services, online payment services, and online communication offerings to a diverse community of individuals and businesses in the United States and internationally. I believe EBAY provides conservative estimates and the company is positioned for solid long term growth.

The reasons the analysts cite for the downgrade is an aging of the platform and competitive pressures from GOOG, Google, Inc. I don’t see any potential competition to EBAY from the likes of Google or other online retailers. I believe eBay’s strength is more than just the company’s technology. I believe the company’s competitive advantages are mainly based on the eBay brand name and the well established internal policy and procedures that are derived from having long term experience in the online marketplace. I believe EBAY is simply too far ahead and too well trusted for another company to make a dent in eBay’s online marketplace. For those of you who don’t remember, YHOO, Yahoo! Inc. launched an online marketplace called Yahoo Auctions that failed to make a significant dent in eBay’s market share. I don’t believe Google will do any better after seeing the launch of Google’s finance page and Instant Messaging product. I am waiting to see if EBAY drops below $35 and I may pick up some shares if it does.

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Pingback by eBay Information Blog » Blog Archive » Article from RawGreed.com - Stock Updates, RawGreed Awards, Business Gossip - Watching eBay, Inc.

2006-04-21 09:25:21

[…] Blog Name: RawGreed.com - Stock Updates, RawGreed Awards, Business Gossip Article Title: Watching eBay, Inc. EBAY, eBay, Inc. has dropped today on analyst downgrades and is currently trading under $37. EBAY is down almost 8.5% today and is down approximately 14% for the year. EBAY is approaching the buy price I like at under $35. EBAY is a quick moving sto… […]

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