Monday, March 11, 2013

EBAY: Caveat Emptor - 3 Reasons To Be Scared Of eBay

Caveat Emptor - 3 Reasons To Be Scared Of eBay
by Benedict Tubuo (Beevest)

eBay Inc. (EBAY) has returned 46.57% in the last 52 weeks, trades at 26X PE, with an annualized average revenue growth rate of 24% in the last 3 years. It owns a premiere online marketplace and market leading payments systems in PayPal and Bill Me Later®. In most cases, it is a good thing to have at least one cash cow, and in eBay's case, even better to have two. If you are wondering why all this positivity scares me, it is because, in my opinion, what has taken them here will not necessarily take them there. It bothers me even more, because the stock is trading at a level that assumes that their growth rate, relevance, and competitive position will continue to drive similar levels of revenue growth, which I just can't see. read more »

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More on EBAY

Valuing eBay's Parts by Marshall Hargrave

eBay Is Trading Far Above Fair Value by Ulfberht Capital

Is eBay A Good Stock To Buy? by Insider Monkey

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