Life Musings

I think that now is a great time to buy Ebay stock. Here's why.

First, underinformed stock investors are scared. This means that it's a good time to purchase stock. They're relatively cheap, and their being undervalued due to fear of the stock market. Buy, buy, buy!

Second, Ebay's outlook is pretty darned good. A lot of market analysts give it strong ratings, and Morningstar gives it five stars. I'd say that's a pretty glowing endorsement. In fact, here's an excerpt from their report:

EBay, PayPal, and Skype all benefit from strong network effects. In addition,
all three services are well positioned to benefit from the growth in their
respective industries: e-commerce and voice over Internet protocol. Therefore,
we expect revenue growth, operating margins, and returns on capital to remain
healthy.

Furthermore, folks who want to supplement their income will quite likely try to sell items on Ebay. That’s potentially a huge market right there. Luxury items will admittedly go down, but I suspect that the non-luxury market will make up for that difference.

And let's face it, nobody will be displacing Ebay anytime soon. How many other online auction places do you know? None of them can even begin to compete with Ebay, and we all know it.

Buy Ebay stock. Now.