The Motley Fool Discussion Boards

Previous Page

Stocks E / eBay, Inc.

URL:  http://boards.fool.com/2013-outlook-30494649.aspx

Subject:  2013 outlook Date:  1/19/2013  11:40 AM
Author:  newsreporter Number:  25774 of 25859

Why eBay Will Trade At New All Time Highs In 2013
http://seekingalpha.com/article/1112091-why-ebay-will-trade-...


eBay (EBAY) is a great investment going forward due to growth in its core businesses, improving economic conditions, and cost-cutting. The stock is likely to appreciate, due to its ingenious business model, and its ability to acquire businesses.

...

Total payment volume has grown by 15.66% (average) for eBay, while PayPal merchant services grew total payment volume by 24.66% (average) in 2012. These growth figures imply that eBay is still growing, and is making an effort to maintain competitiveness in the market place.

The company has authorized a program of repurchasing $2.0 billion in common stock to off-set the dilution caused by share-based compensation programs for its employees. This should help to smooth EPS figures over a long-time period. eBay can generate higher returns on capital by investing the capital back into its business, rather than rapidly retiring the shares through buy-backs.

...

The company is a great investment for the long-term. I anticipate EBAY to deliver upon the price and earnings forecast despite the risk factors (competition and economic environment). EBAY's primary upside catalyst is improving economics, successful acquisitions, growing revenues, and managing co